Nothing like that. The file system driver simply monitors the normal file operations requested by other programs that run on the machine against the filters you've selected. If there's a match then it adds an entry to an internal buffer that records the operation and the filename. Which completes the driver request and gets an event to run in your program. You'll get the details of the operation passed to you from that buffer.
So nothing actually happens the operations themselves, there is no extra disk activity at all. It is all just software that runs. The overhead is minimal, nothing slows down noticeably.