You would need to either Amend your 2017 return to add the 1099-B you received from the State of Wisconsin, or contact the State to issue a Corrected 1099-B, since you did not actually receive the funds until 2020.
Here's how to How to Amend a Prior Year Federal Return.
You would need to file a Non-Resident State Return to Wisconsin to report the income.
Click this link for instructions on How to File a Non-Resident State Return.
Since your wife received the stock as a gift, this link gives info on Cost Basis of Gifted Stock. This would be considered 'long-term' as the stock was held for over one year.
Be sure you indicated that you did not purchase the stock in the Investment section interview.
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