Theme installation – how to activate?

I just downloaded a free template and compressed it into a zip file so that I could upload it. I went to cPanel File Manager and uploaded it in WP-Content — it is now showing up in a list with some other themes i installed directly through wordpress. I just started using wordpress and am still very confused.

But my question is — when I go to my wordpress site, it doesn’t show up under themes with the option to activate it. I feel like there is likely a step I am missing? It shows up in the list with a yellow package icon next to it. Whereas, the others, have a blue file folder next to them.

Any solution?

Thanks!