T is top dead centre, F is "fire", the spark should fire at this point at idle. There should be another unlabeled mark at 1-4 and 2-3 that shows where the spark should fire at full advance, above 3000 RPM roughly. You can check that 1-4 is a TDC by looking in a sparkplug hole and seeing that the piston is at the top.
You don't have to be anally accurate, the camchain teeth are quite a few crank degrees apart and if you get it on the wrong tooth it'll be way off.
If you plan on degreeing the cam - ie setting it to spec with an adjustable sprocket - you have to be anally accurate with TDC on your degree wheel, a dial indicator on the piston should be used to set TDC exactly.