problem with .htaccess . Please I need help!

Hello, so on W3 Total Cache i got error “The required directives for fancy permalinks could not be detected, please confirm they are available: Creating and editing” it’s not a error, but it’s in red. So after that i checked my website speed and my YSlow grade droped to 59 from 67. This red thing happened when i tried to move .htaccess to other direction so i could use back up thing becous i have plugin who clears database and backsup and saves it. I don’t know what to do and my .htaccess now is text format and i don’t know if it should be that way or not.

[No bumping. And we do not need to see a blow-by-blow account of your current benchmark tests. If it’s that urgent, consider hiring someone.]