The zip file you download from ThemeForest contains the PSDs, documentation, license plus the Propulsion theme zip. So the first step is to unzip/extract the zip file you downloaded from ThemeForest, making sure to extract “propulsion.zip”, then install the “propulsion.zip” via Appearance > Themes > Install.
After you have downloaded the zip file from Themeforest, unzip the folder and inside it you can see another zip file named propulsion.zip, unzip this file and find the propulsion folder. Open it, and you should see two folders, named _MACOSX and propulsion. Use the propulsion folder (inside the propulsion folder) and upload it to your site via ftp. You should upload it to this folder: wp-content > themes. Hope this helps. :)
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