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How are we supposed to know how to do this?
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It says in the description of the exercise how to do this: Use the RichTextBox control's LoadFile and SaveFile methods.
Those methods are summarized in Table 7-3 on page 82. There's a code snippet that demonstrates LoadFile on the bottom of page 82 and there's another snippet that demonstrates SaveFile in the middle pf page 84.
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Not sure where you covered something like StreamType:
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The Typing Tips sidebar on pages 83 - 84 talks about the stream type parameter. It basically tells the LoadFile method what kind of file it will be loading.