I presume a ring terminal is a small circular metal ring with a wire attached to it. That would likely be for the ground owen or what the English call earth ...is part of the kit wiring harness that is one of the wires that you must connect to complete the circuit....and why you connect it to the fender screw....ground runs through the entire frame and metal fender on these bikes. You are a long way from being in trouble. There isn't much that can't be solved here and pictures are a big help if you get stumped.I just got the kit, and I have a problem. The instruction say to put "the ring terminal" over the top screw on the underside of the fender, but unless I am blind I don't see any such thing down there. Am I in trouble?
It looks like it will fit fine, the extra holes won't show and the spacers clean it up a treat.