Sophie, unless you are going to reproduce your art with offset lithography, Cynthia is correct C (cyan) Y (yellow) M (magenta) K (black) is a separation process for the printing industry. Most software provides different "modes" for editing images now so you wouldn't need it.
If your digital camera is taking your photos in CMYK jpegs, you might be able to change that. I didn't know they did that, I always thought digital cameras would support a screen mode of RGB. The newer, expensive cameras have two formats (not jpg - sorry, I can't remember the names), that are better for white balance, level and curve retouching.
It's an easy decision if you are going to have materials commercially printed - Photoshop is the best. If it is just for the web, computer or your personal print needs, Paint Shop Pro sounds like a great deal.
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