This refers to base pairs.
File size has no particular meaning beyond practical considerations, given that it depends on the format. (For example, 2bit files use 2 bits per base, as the name indicates, compared to the 8 bits necessary for each letter in a plain text format like FASTA & derivatives.)
For your additional question, (number of reads * length of each read) gives the total length of sequence contained in the file. It is not really a property of the file format, but a parameter of the sequencing run.