I think you've got it. You can look at it like this, which might clear it up.
Forget about column C
Pretend you have Baskets that all contain an apple an orange and a banana, but the file you are given only has some of those fruit
Basket_1 Orange
Basket_1 Banana
Basket_2 Apple
Basket_2 Banana
Basket_3 Apple
Basket_3 Orange
Basket_3 Banana

I need a file that will have 3 rows for each basket, each row with the respective fruit.

This means that the number of rows are defined by the number of fruit total for each basket. (in this case 3 per basket)

Does that help, I know that might sound ridiculous but I just want it to be as clear as possible.