Nevermind, Susan. Based on your assertion, I went out to irs.gov to look at the instructions for Form 1116 on their website. I found the following:
If foreign tax paid on passive income is reported to you in U.S. dollars on a Form 1099-DIV, 1099-INT, or similar statement, you don't have to convert the amount shown into foreign currency. This rule applies whether or not you can make the election to claim the foreign tax credit without filing Form 1116 (as explained earlier). Enter “1099 taxes” in Part II, column (l), and complete columns (q) through (u) for each foreign country indicated in Part I.
In other words... you were right, and the TurboTax field instructions were wrong! Thank you for sharing your expertise!
