What does this error mean?

When I am connecting with server in FileZilla, I am getting this dialogue box stating “This server doesn’t support FTP over TLS. If you continue, your password and files will be sent in clear over Internet.”

What does this mean specifically?

Right now you are connected over an unsecured FTP connection.
When you transfer a file over FTP, you can see the contents of the file in the packets.
When you come over onto Module 6, you will be able to solve this issue by encrypting a given message using SSL.

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