The index.php is in your /public folder. Some hosting-providers does not allow for overriding "Options" in the .htaccess. You might want to comment that line out to see if it works.
You should probably try installing via Composer - it makes life easier in the long run. But yes, index.php is inside the public folder - as this is supposed to be the public-facing folder of your web application.
I got it to work, thank you! I set the /public folder to be the root of my project, so it works now.
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