Personally, in your case, I would go with the 'No Entry' option at the first prompt and skip it. That just says to leave the disposition blank.
If you don't want to do that then the disposition is a sale and you'll click on complete disposition and enter the purchase date as the date that you bought the partnership, the purchase price as zero, the sale date as the date that you had the other partnership created for you and the sale price as zero.
In this case disposition just means got rid of. And a sale is a way to get rid of something.
@ppumgrad
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