Jesse, I had the same reaction when he said "terror" and asked him about that. He said he organized a small conference called EAT, which was an acronym for envy, admiration, and terror—the three forces he thinks are most important in achieving great things. He said when terror gets paralyzing, it stops you, but if you can muster the confidence in your idea, it pushes you to extraordinary levels.
It's funny, because we think of leadership as calm under pressure, but I remember how Steve Jobs was always nervous Nellie, calling in the middle of the night because something was scaring him.
As far as the question goes, here's a fascinating 2-minute clip of him addressing questions.
And some quotes from his book: