The Field name defines which field from the list to use for the column names (e.g. if Priority is the Field, then the column names can be High, Normal, and Low.
The Field name defines which field from the list to use for the row names (e.g. if Category is the Field, then the row names can be Hardware Request, Email, etc
The Value Field determines which field from the list to use for the data returned. For example, to return a count of the number of items matching the column and row criteria, choose a unique value. In many cases ID will work, as this will provide a count of the total number of items that match the criteria.
Calculation: Which calculation has to be applied (Summary/Count)
Select template: Template allows for configuring the look and feel of the report. You can manage/Create template from manage templates Link.
Select the template of the Layout and Click Create Report.