Keto is in its simplest form very low carb, typically classed as under 20g carbs per day. It is the process of getting your body using fats for fuel instead of glucose. Ie being in ketosis. It may occur at higher levels than 20g, possibly up to around 50g is but 20g is quoted as by that level almost everyone will have achieved it. Some versions veto certain foods regardless of carbs eg processed and seed oils.
The high fasting sugar is indicative of high insulin resistance. Fasting sugars are often the last reading of the day to come into line and will gradually fall as you metaphorically drain the stored glucose out of your body to better levels.
The small rise of 0.7 mmol after breakfast is ideal (presumably not tested immediately it around the 90 mins to 2 hrs mark). Keep going like that and your hb1ac will come down and so will your morning reading. After cereal it would have been a much much greater rise.