Armada Hackers threatening e-mail

I have just received a threatening e-mail from a group calling themselves the Armada Collective, demanding that I should pay them money (in the form of bitcoins) or they will hack into my computer and destroy everything.  I have checked my AVG status and it is "fully protected". If this threat is real, will my AVG be capable of protecting me~?

Hello Ian,
We regret for the inconvenience caused. We strongly advice not to download any attachment from email sent from unknown source. Do you access your emails using email client or browser? Thank you.