(3) The photons hitting the Base will be absorbed by the Base, and positive charge carriers (more precisely "holes") will be created at the Base and as more and more charge carriers (holes) build up at the Base, a voltage potential is formed between the Base and Ground, causing a current will flow from Base to Ground. Let us call this current Ib, which incidentally is small, because U1 is a weak guy, and cannot create too many photons to create acause big enough signalcurrent to wake up its neighbour, the photo transistor.
(5) Now Ofof course Ic flows through LED1 as well.
(6) What will LED1 will now do then? Ah, it is time for me to prepare my locking down supper. Perhaps the OP can complete mythe story and write up his lab report, including an acknowledgement to the EE SE perhaps? :)