Hello @Emer1
If the only option was accept/decline then the guest sent you a reservation request, not a booking inquiry.
Yes, accepting a reservation request means that the booking is now paid for and confirmed.
A reservation request means that the guest is ready to book the dates. It means that they have clicked on the "Book" button for your listing.
You can respond with questions but you must either accept the booking or decline it within 24 hours.
See the article below by Dave & Deb for the differences between a bookiing inquiry and a reservation request.
Reservation inquiry or request what's the difference?
Steve.