API Limit per user or per application

I would like to ask if API calls are per users on my website or per the whole application.

I want to ask about Instagram API. It says API Rate Limit is 200 requests per hour. Now if I want to make a website and integrate Instagram API to allow users to post an image, or do anything using the Instagram API. Now say I have 1000 active users make 20 request within one hour, (Total of 20000 API calls) Does that mean API Rate is reached, or that is okay and every user have 200 API calls within one hour?

On developers.facebook it says:

Note that this is not a per User limit but a limit on calls made by your app. Any individual User can make more than 200 calls per hour using your app, as long as the total calls from your app does not exceed the app maximum. For example, if your app has 100 Users, your app can make 20,000 calls per hour. However, your top ten most engaged Users could make 19,000 of those calls.

Now I am not sure about this! This is where I got the post from: https://developers.facebook.com/docs/graph-api/overview/rate-limiting/