Correct. It contains all the game's data, so if you replace it with the latest one, it'll work just fine without skipping from the start all over again, that is such a hassle so I tried and yes, it did work...
Well, I haven't explored that part yet... I don't happen to move them out of the saves... It seems... Weird.. but no, I don't know that part... I didn't explore the other parts.