Its not a stupid question, I asked the same one myself when I first got my M.
You can add oil to either part, there should be holes in the inner ring that allow the oil in/out, so the level will come up no matter where you add it. Since the oil can get pretty funky and doesnt really have to be super oil, I just use the straight 30w oil from Wal-Mart that is their economy oil. Its non-detergent, and I was able to get it for about a buck fifty a few months back... I dont know what it is these days...
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