If you took the Standard Deduction on your 2023 tax year federal return, the refund needn't be reported.
If you Itemized on your 2023 tax year federal return, enter the 1099-G and complete the interview.
The reason is that if you took the Standard Deduction, you did not deduct state taxes on Schedule A.
If you did not deduct state taxes on Schedule A, you needn't report a state tax refund.