Extract the ~ mods folder into the Paks folder. The end result should be:

FINAL FANTASY VII REMAKE INTERGRADE \ End \ Content \ Paks \ ~ mods \ OPTION 1 - OG Cloud's PSX Colors.pak

Extract the ~ mods folder into the Paks folder. The end result should be:

FINAL FANTASY VII REMAKE INTERGRADE \ End \ Content \ Paks \ ~ mods \ OPTION 2 - OG Cloud's PSX Colors.pak

Extract the "~mods" folder into the "Paks" folder. The end result should be:

FINAL FANTASY VII REMAKE INTERGRADE \ End \ Content \ Paks \ ~mods \ Cloud FFVII PSX Hair.pak