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Bid groups

I am a bit confused. Though I have been sniping for awhile with some success I am unsure of using the "bid group." I read and followed the tutorial. Now the item is highlighted with a RED box in MY SNIPES.
There is an item I'd really like to win. My questions are:
1) The item is unique from 1 seller I have it set up to snipe.
2) I am following closely and so far I have the highest snipe bid-(shown)
3) Do I need to put in my higest bid now or watch and wait-will it go automatically over the highest bid or do I have to monitor it and hope I can change it with 3 seconds left?
Thanks much for your advice. Confused
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