How to point Amazon DNS service to a specific folder on EC2 server

I feel very dumb already. I have searched for the answer for 2 hours without any success.

I have bought a domain through Amazon - Route 53. It has created 2 hosted zones for me NS and SOA type.

I am unable to figure out how to point a specific domain e.g. example.com to a specific folder on the EC2 server.

Do I need to create that A type hosted zone? If yes, do I just put IP address into value field of that zone? If yes, how then it knows which folder should it pick?

Is there any set up to be done on the actual server(I mean through remote desktop)? Do I need to setup a DNS there? I guess not.