I've heard of the working file in python before and was just wondering what it was and where I can find it in python

The working file, is the file wich you are processing.

The one that you create or open, and read or write to it.

To go one step further, the working folder is the folder/directory your working file (present program) is in.

Run this little program:

# save this program as working.py

import os

# this will show the folder you saved working.py in
print( os.getcwd() )

I thought that the working file was a folder you could save images in to make it easier to load into a program or is that still possible

If you write a program that needs to load an image file, it is easiest to simply stick a copy of the image file into the same folder that the program works out of.