Where to place a certain code in Suffusion Theme

I am working with the Suffusions WP theme. Here is my website. On the main menu the tab labeled “Find My Store” has a drop down menu. The items listed in the drop down menu are categories. As you can see I have multiple categories and I would like to be able to customize the side bar on each of these categories. Currently from what I can tell the side bar is controlled by sidebar 1. I’m not an expert with this stuff. I wanted an easier way to define which widget went to which category and so on. So I found a website that gave me the code below to insert into my function.php file:

add_action( 'widgets_init', 'category_sidebars' );
/**
* Create widgetized sidebars for each category
*
* This function is attached to the 'widgets_init' action hook.
*
* @uses	register_sidebar()
* @uses	get_categories()
* @uses	get_cat_name()
*/
function category_sidebars() {
$categories = get_categories( array( 'hide_empty'=> 0 ) );

foreach ( $categories as $category ) {
if ( 0 == $category->parent )
register_sidebar( array(
'name' => $category->cat_name,
'id' => $category->category_nicename . '-sidebar',
'description' => 'This is the ' . $category->cat_name . ' widgetized area',
'before_widget' => '<aside id="%1$s" class="widget %2$s">',
'after_widget' => '</aside>',
'before_title' => '<h3 class="widget-title">',
'after_title' => '</h3>',
) );
}
}

I now have each category listed on the right side when I go to appearance and select widgets. Which is exactly what I want, but I have no clue where to enter the following code in the sidebar.php file:
$sidebar_id = ( is_category() ) ? sanitize_title( get_cat_name( get_query_var( 'cat' ) ) ) . '-sidebar' : 'sidebar';
dynamic_sidebar( $sidebar_id );
I am not an expert at all this coding, CCS, etc. Can anyone help explain this to me in “blonde” persons terms?