Yep ... 32 oz is the amount of yarn you will need to finish the project. When you buy your yarn, make sure you buy a little extra of the same dyelot just in case. If the yarn has no dyelot then you don't have worry if you find you need more; you can just buy some more if you need it.
That sounds like a "worsted" description in a nutshell; although, I wouldn't put too much faith in the 5 sts per inch because of guage and needle differences. But just remember that the yarn weight is noted on the yarn label, so you don't really need to know an exact definition.
Also, if the pattern gives you the amount of yards needed for the project, use that number to buy your yarn. Yardage is generally more accurate. If the pattern does not note yardage, but does suggest a yarn and how many skeins of that yarn, punch the numbers and get the yardage for yourself. That's what I've started doing...