This means that you have a file in your working copy that is untracked which also exists as a tracked file in the branch you're just about to merge. In your case Git doesn't know what to do as it doesn't want to overwrite files you might need. Your options are:
Basically, Git doesn't like to delete files unnecessarily so will want you to address the problem yourself before doing the merge. The error message does tell you which files are causing the problem so this should be pretty easy to fix.
Hope that helps, feel free to ask more questions if needed.
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