Cheritart, welcome to the forum! Basically this is a liver disease forum, not just for those with hepatitis.
The good news is that fatty liver disease can be reversible. As your doctor mentioned, NO alcohol. Also, if you are overweight, you should lose the extra weight. Did your doctor say anything about NASH or non-alcoholic steatohepatitis? NASH is more serious and can lead to cirrhosis and death. Since you also mentioned fibrosis, I'm wondering if you might have NASH. When you go over the the results of your biopsy with your PCP, if NASH is mentioned or if you have cirrhosis, you absolutely should get a referral to a hepatologist.
I can't address the stages, except to say it would seem you are in the middle. According to Dr. Palmer in her book Hepatitis & Liver Disease, "Fibrosis is the initial stage of the formation of scar tissue in the liver. Cirrhosis is irreversible scarring of the liver." With NASH, fibrosis can progress to cirrhosis. That is why it is very important to see a hepatologist if this is a possibility. Actually, if I were you I think I'd ask for a referral to a hepatologist regardless--if your biopsy confirms fatty liver, you need to get a 2nd opinion.
I hope this helps a little. Please let us know what your PCP says.