Check out example codes for "how to instantiate a gameobject". It will help you in understanding the concepts better.

Code Example 1

// You can use the 'Instantiate()' function to clone a GameObject
clone = Instantiate(original);

// You can also set the position, rotation and parent
clone = Instantiate(original, new Vector3(0, 0, 0), Quaternion.identity, cloneParent.transform);

Code Example 2

/// <summary>
/// Creates a new Gameobject prefab called Name_1 for example
/// Instantiates the prefab
/// </summary>
public void AddGameObject()
{
	//created for example only
	GameObject testPrefab = new GameObject("Name_1");
    Vector3 objectPOS = Vector3.zero;

	GameObject newGameObject = Instantiate(testPrefab, objectPOS, Quaternion.identity);
}

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