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To clarify: I did not log into anything from the email. I did not click on anything. I logged into the actual amazon.com site. There was also more to the email that I did not quote, about how to contact Amazon support, signed with a person's name etc. It was a legit email.
I telephoned Amazon this morning and they said it was a legit email, there WAS unauthorized activity, and they can just reactivate my account and have me change the password. I hope this will be enough. I also checked my credit card and it has not been hacked. I am going to go this morning and change my password on all my important websites.
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