The 33-35mm is the chain slack, i.e. how far up and down you can move the chain. Measured approx at the half way point between the front/rear sprockets. This doesn't have to be exact, but so long as you spin the wheel until you find the tightest part (there'll almost certainly be a tight spot on the chain) - sorry if I'm telling you how to suck eggs!
Take the callipers off (two bolts) then push the pads up against the top spring and move the pad inboard, it'll all be obvious when you do it. When you put the callipers back on make sure you torque the calliper bolts properly - 40Nm. Have a go, what's the worst that could happen!! It's a job that ought to be done frequently anyway in order to keep the bits clean that you can't see and stop the road grime damaging the seals - toothbrush (your wifes, not yours) and a squirt of brake cleaner.