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In order for the drive to work with both Mac and PC, yes, it must be formatted to FAT32.
I only recommend using solid-state hard drives for their performance and resistance to shocks and bumps. They cost more, but the time saved not waiting for data transfers is worth the additional cost of purchase. The top-performing Samsung EVO 850 in a 1TB model is selling for around $330USD - add an inexpensive enclosure and you've got yourself a fantastic storage option.