When you create resources in GCP such as VPC, Terraform needs a way to keep track of them. If you simply apply terraform right now, it will keep all the state locally on your computer. It's very hard to collaborate with other team members and easy to accidentally destroy all your infrastructure. You can declare Terraform backend to use remote storage instead. Since we're creating infrastructure in GCP, the logical approach would be to use Google Storage Bucket to store Terraform state. You need to provide a bucket name and a prefix.
Now let's move to the terminal and apply all of these files. I assume that you already have Kubernetes provisioned and kubectl configured to talk to the cluster.