One half of the cake is four slices, and the entire cake (if it was all there) would be 8 slices. For the four slices to be distributed equally among the four people, each person gets 1 slice. 1 slice out of the 8 total in the cake would be 1/8 of the whole.
The translation f(x) - 2 means to subtract 3 from the whole function. As an equation this is 3x - 2. On the graph, the function will shift down vertically 2 units.