Photo Resolution for Ad

I am creating an ad.
The magazine specs: Heatset, saddle stitched, 45 lb. Web offset enamel,
200 lpi.
All files should output to: minimum 150 lpi / 300 dpi;
maximum 200 lpi / 400 dpi.
I am planning on making my photo just 300 resolution in Photoshop like I normally do for print work. Is this correct?
Thanks for your help!

THANK YOU!! You just offered me so much information!
I am going to layout my ad in InDesign. Since I have a PC, they said to provide a 'high resolution' PDF. Should I go through the process you listed above of what exactly they mean? There are so many settings in a PDF these days.
Thanks.

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