iPhone disabled for 15 minutes?

I just attempted to update my iPhone 7plus from IOS 10.1.1 to the latest version.

It asked me to enter my password to perform the update and took me to the white/grey screen. The first character wasn't showing up, which caused me to type my password too many times and and get iPhone disabled for a minute.

I am currently locked out for 15 minutes, however I definitely know my password as it's been the same for years. I just need to re-try a different combination of which letter I've made a capital, where I've placed a number in my password, etc. I just need a few attempts to remember it.

What happens if I type in the incorrect password again?
I've read about needing to connect to iTunes to disable the password and erase the phone after a certain number of attempts, but what is the case for someone who definitely knows their password, but just needs a few more attempts?

Also, I made a backup just before this happened, am I able to restore that to re-gain my information?