You are not posting on the correct section of the forum, you should make a dedicated topic on the "Ask for Help" section.
But to reply to your questions...
First...
The "Game Objects" are the same as the "Monster Objects" the only difference is:
- the Game Objects use the "GameObjectsTileset.bmp" tileset, and share the same sub palettes (the ones assigned to the Player).
- the Monster Objects use their differents tilesets, and will use different sub palettes (the ones assigned to the screen to which you will assign the monsters)
For ALL those objects, you can set different "flags", when those functionally flags are set, the game engine will execute different scripts or specific code for each of them.
Then...
If you want a "pickup" object, you need to set the "pickup / powerup" flag in the object details dialog. If you want a monster, when you touch it will hurt you or you can kill it, ... you will set the "monster" flag in the object details.
But, as explained in the tutorial videos, those are only a default behaviors... you can modify the scripts to do anything you want with those flags. You could also have totally different flags for your objects, if you code different behaviors for them.
In the Game Object list, 4 of them are specials: the "Pickups" labelled ones.
For each of them, a PowerUp script can be assigned. So, when you collect them, you can execute something. For ex, you collect the Health Pickup and the game engine executes the Increase Health script. You collect the Currency Pickup and it will execute the Increase Money script, ...
The association between the Pickup object and the script to execute is done in the "Project Setting>Script Settings" Window.
For your "Health Pickup", set the "pickup / powerup" flag, assign a bounding box... and just place it on the screen:
Note: but to be able to place objects on a screen (game object or monster object) you need to assign a Monster Group to your screen (in the screen Infos), then you will have the menu.
Also, assign the "IncreaseHealth.asm" script to the "Power Up 00" element in your "Project Setting>Script Settings":