Yes, unlinking is the same as deleting. Yes, it means that the OS (more accurately, the filesystem) stops tracking the file and marks the locations on the disk where it is stored as empty. It's called unlinking because (a) "delete" is ambiguous, and (b) on Un*x systems at least, one file can have multiple links.
It's more likely you're just getting mixed up about what's going on with all those file operations.