Now, what should I expect to happen after that?
A new window will pop-up and you will be able to set the transaction fee there.
I'm not interested in setting or negotiating lower fees, I would prefer to use the default fee structure because I don't want to low-ball, that might cause delays and I prefer an efficient transaction (I don't mind paying the fee).
Currently, miners are including transactions paying 2-3 sat/vbyte in the blockchain.
Set the transaction fee rate to 4 sat/vbyte and your transaction will probably confirmed in the first block. (Chances are the required fee rate is different when you are reading this post.
You can also use electrum's recommended fee.
Select "ETA" from the drop-down menu and set the fee target to "In the next block".
PS: Also have an unrelated question..... I have another paper wallet from the same era, generator, and coding, but it has zero balance. I would like to use this paper wallet for the test run, so could I have my friend send me $200 to this old paper wallet address using his own transfer methods, then once there are X amount of confirmations I could use this old paper wallet that now has a fresh $200 balance to send that back to my friend via the Electrum sweep function as a test run, correct?
There's nothing stopping you from doing this and note that you don't have to wait for the incoming transaction to be confirmed. Electrum allows to spend unconfirmed coins.
And again, you are not using your paper wallet in the correct way.
As I already said in my first reply, paper wallets should be created offline and your private keys should never connect to the internet.