The text will again be selected. Click the OK button. Click the OK button. The reason for contracting and then feathering the selection by one pixel is to blur the edge slightly to help prevent the jaggies. I normally prefer to save web images in GIF format but it doesn't work very well with gradients.
Gradients have a high color depth and reducing it creates visible color separations.
Since the text in this lesson is basically a gradient, I found that saving the file as a JPEG gave better results. You can also save in PNG format to retain the quality but the resulting file size is much larger.