I am trying to reset my Iphone to how it was when i originally got it. First i went to back-up all my information, music, movies, apps, etc. Once it finished in the subsection "Summary" next to "Check for updates" the option on "Reset Iphone". If I press that will it delete all my data off the phone but not take away the back-up information on my PC? If it doesn't what does it do? Thanks in advance.
Added (1). Okay, so where do I go if I want to re-set it to factory settings?
Added (2). IMPORTANT! Will I lose my contacts?! How could I back them up?