The e-mail demanded US$1,000, payable within two days. Claims in the e-mail are false (that it was sent from the recipients e-mail address -> the message headers show it wasnt; that the sender has video from the recipients webcam -> the recipient doesnt have a webcam), so these are idle threats and should be ignored. The e-mail body is a single graphics file with numerous typographical errors, so you wont be able to cut & paste the Bitcoin wallet ID as instructed. This is done intentionally, to evade spam filters.