On your server, public_html / www folder acts as your root folder, and in xampp, it is htdocs.
So you basically, write htaccess rules in your root folder and you upload that folder to a sub-folder in htdocs as myfirstphp, so you need to RewriteBase as /myfirstphp/
RewriteRule ^terms$ terms.php
RewriteRule ^faq$ faq.php
This should get you going.