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Oh, that's easy to fix! EPS is Encapsulated PostScript. It's a format for graphics files that can include text using PostScript fonts. It's just like normal PostScript, except that the file includes information for the bounding box of the image, which is needed, if you want to include the file in another document.
PostScript and PDF are related. PostScript is a page-description language for printing. Many printers have processors that contain a "PostScript interpreter". PDF, on the other hand, was designed for sharing files, particularly via the internet. When you send one to a printer, it's converted to PostScript for printing. It's easy to convert PDF to PostScript and vice versa. Therefore, it's no problem for GIMP to convert a PDF file to an Encapsulated PostScript file.
TeX is a program for computerized typesetting. It's available for free for just about every system one is likely to have. TeXLive and MikTeX are two distributions. It's no problem to install and use but admittedly a little complicated. However, one can use it to produce results of the very highest quality, especially if it contains mathematical text.
DVI ("device-independent") is the format of the files you get by running TeX. So, if you have a file containing the commands I showed, and some other necessary ones, running this:
tex myfile.tex
will produce the DVI file myfile.dvi. Then, dvipdfmx myfile.dvi converts myfile.dvi to myfile.pdf.
epsf is a "macro package" that supplies the macros \epsfsize and \epsffile. It's not really necessary in this context to know anything more about them, one just uses them as shown.
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