Will I lose all my settings if I have to restore my iPhone 4?

I was updating my phone via a computer then wifi crashed now my iPhone 4 is stuck with a picture of a cable pointing towards the iTunes symbol. I connected it back to my computer hoping it would start updating again but it tells me I have to restore my phone but it will go back to the factory settings.

iPhone User Guide (For iOS 4.2 and 4.3 Software)

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