I reorganized all my folders in lightroom, my question is does it rearrange the folders on my PC to match what I did in lightroom? I feel bad for asking this as I have been using lightroom for awhile and should know this. Thanks in advance.
Yes, folders that are moved in Lightroom are actually moved to their new location. You can verify that by right clicking on one of the images and choosing to show the photo in Explorer or Finder, depending on your OS.