Follow Tony's advice first and see what happens. In your Moodle,
It appears that your hosting company installed moodle for you, or you did it with a one-click install routine, right?
Have you considered asking your hosting company to increase upload_filesize for you? Lean on your hosting company for help. It may be that they will tell you that you cannot increase upload_max_filesize, in which case you are stuck (finding another hosting company).
What do you see, in Moodle, when you go to Site Administration|Server|PHP info? Anything? If it shows something, use your "find" command in your browser and look for the value of upload_max_filesize. Do this before applying Tony's suggestion, and after applying it. Again, you might need to reboot your server. I am not sure if .htaccess changes take effect immediately.
1) Your cPanel filemanager may not allow you to go up the directory tree to the point where the real php.ini can be found. You may need to SSH into your server.
2) Ask your hosting company and see what they say.
3) Okay. If you get the ability of doing SSH, you might need to learn a UNIX editor, such as nano, if it exists on your machine.
5) Ask your hosting company. Many hosting companies give you this ability after you log into your account (before going to Filemanager).