What Does The Store's Letter Mean?

My question involves criminal law for the state of: INDIANA

ok i was caught shoplifting $41 worth of stuff from kmart last week today i get this letter in the mail can you tell me what it means ?
i thought it meant that i pay the $300.00 in full and im done with the case but then i call to make a payment and they said i will still have to go to court for the criminal side of it?
please help ?
Dear jennifer ******
this law firm represents Kmart concerning its claim against you in connection with an incident in their store on 9/12/2008.
pursuant to burns indiana code sections 34-24-3-1 and 34-24-3-2, kmart may proceed with a civil penalty claim against you.
YOU MAY SETTLE THIS MATTER BY MAKING PAYMENT TO US IN THE AMOUNT OF #300 WITHIN 20 DAYS OF THE DATE OF THIS LETTER. upon receipt of full payment and clearance of funds, you will recieve a written release of the civil penalty claim.

should payment fail to be made on time we may review the possibility of further actions often resulting in a higher settlement request. kmart may also file a lawsuit in which case it will seek any attorneys fees, court costs.

does it mean that if i pay in full by 20 days i dont have to go to court ? and if i still have to go , what will take place?
thanks

This is Civil Demand its state law! Its also a Civil action and unrelated to any criminal charges that are or may be filed. Failure to pay can result in tripling of fine and law suits. Which is short will take a few hundred and turn it into a thousand or more.