Being that this reply is quite a few months late, and no response has yet to be given on this page, I'm not sure if this issue is resolved or not, but regardless, I'll answer here. (:
It looks like you simply put the RAR file in your Saves folder.
A RAR file is (for lack of technical terms because I'm not as much of a tech geek as I'd like to be) essentially just a zipped file. You'll need a program like WinZip to "unzip" it.
Once you unzip the file, you should have a save folder called "Sugar Valley Test" in that folder where the RAR file is.
I hope you see this, and I hope this helps! If you need any more clarification or have any other general questions, feel free to PM me or post here!