A carb, or carburettor, is a device which mixes fuel and air to then introduce to an engine. On a nitro engine, they look like this:
As you can see, there is a slide (metal shaft) in that hole- the bigger the gap, the more air is sucked in, causing more fuel to be sucked in as the air rushes past the needle (Which you can't really see here). This slide is adjusted by a servo (electric motor) pulling on the bit where it says low speed needle. As it is pulled the slide moves, allowing more fuel and air to enter, increasing the engines power and rpm, making the car go faster. When the servo is in neutral position (Idle) The gap becomes smaller, and will not go any smaller from that point- this is the idle gap. Adjusting the idle screw sets the width of this gap, changing the amount of fuel and air to enter the engine when idling. If this gap is set too high, the car will move on idle, if it is set too low, it will stop/ not start because not enough fuel and air is entering the engine to allow for proper engine operation whilst idling. The carburetor is mounted onto the engine, and has an air filter around the hole, this stops any dirt or debris entering the engine and damaging the internals- the air filter can be pulled off to see the gap, to then adjust accordingly.
On your car the air filter is the spongy bit next to the engine, pull out the sponge to see the slide like the picture above, and set the gap to 1-2mm.