How can Electrum restore a wallet?

How can Electrum restore a wallet?

I've some questions about the technique of storing and restoring a wallet using Electrum.

  1. I found out that Electrum stored a file on my PC. This file has my wallet's name so I think this file contains my bitcoins. If I deleted this file, my money will be lost forever, Am I right?

  2. I have 12 words (The seed). Will those words restore the file if it is deleted? Or Are they just used to restore password?

  3. What are all the things that I need to restore my wallet? (Eg. the file, the seed, the password, private keys, ... etc)

Thank you so much,

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