Confused about types of storage and encryption

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http://forum.xda-developers.com – I'm confused here. The naming of type of storage. There is SD and External SD and "device". I assume SD is the internal (16GB) memory and External is the (64GB) Micro SD card I have inserted? With that in mind, I get confused on file managers that say SD memory because that makes me think Micro SD card. They even show it as as a card icon in OI File Manager! But now I realize that exSdCard is my microSD. So now my question is the encrypting. We have two options: Encrypt Device and Encrypt SD card This is confusing! Is the "device" the internal 16GB SD? Or i (HowTos)