No, the current form 8889 for 2020 is correct. Part III is supposed to refer to 2019.
This is a test for the last-month rule. If you have HDHP coverage on December 1 of the tax year, then you can use the full annual HSA contribution limit, even if you signed up in mid-year.
The trick is that if you use this, then you have to keep under HDHP coverage for all of the "testing period", which is the following year.
This part of that process. We need to know if you used the last-month rule in 2019 to know if you should be penalized in 2020 for failing to maintain HDHP coverage for all of 2020.
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