Quick manual update question

GP Premium - lic key in settings. URL in GP site list. but says automatic update unavailable for this plugin (goin from 1.91 to 2.03)
So I need to do a manual update - no problem, but I do not want to loose any settings.
And I've been away from WP for far too long and need a brain refresh

Do I just go in via FTP, delete the contents of the plugin folder, unpack and upload with the new updated version?
Or do I need to deactivate on the WP side in plugin admin (do I delete?), upload new and then activate.
Fearful of loosing all my settings.

The manual simply says "Upload and activate the fresh copy you downloaded in step 1"

thanks