AirPort Utility Network Setup - Replace Router or Join Current Network?

I just got an AirPort Express and plugged it in.  The Airport Utility - Network Setup asks if I want to:
1)     Create a new network
2)     Replace an existing base station or wireless router with AirPort Express
3)     Want AirPort Express to join my current network
I am not too advanced with computers, so I need to ask, what should I be choosing here?  There really isn't much in the manual about the topic.  I already have AT&T Uverse for my internet and get wireless internet access through them.  I got the AirPort Express so I could print wirelessly from devices to a printer that is hooked up to the AirPort Express and so I could create a guest network for visitors that want internet acess to whom I don't want to give my AT&T password.
Thanks.

1.) Since the Airport Express is extending the Extreme Network, will my whole network now be single radio only network, since the Express only has one radio?
Although, your AirPort Express is 802.11n, it is not simultaneous dual-band. That means it can either extend the AirPort Extreme Base Station (AEBSn) 2.4 GHz or 5 GHz radio but not both at the same time. So the AEBSn will still be broadcasting on both the 5 GHz (for 802.11a/n) and on 2.4 GHz (for 802.11b/g/n).
2.) What if both an 802.11g and 802.11n device connect to the Express' radio instead of the Extreme's for some reason, will this make both devices operate at 2.4GHz?
Yes.
3.) What if an 802.11g device connects to the Airport Express' radio. Since this is now 2.4GHz, will it only now communicate with the Airport Extreme at 2.4GHz?
Assuming that you configured the AXn to extend the AEBSn's 2.4 GHz radio, it will only be able to communicate back to the AEBSn on its 2.4 GHz radio.

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