LLC solo 401k form 1099INT and schedule K-1

I have a SMLLC and I set up a solo 401K under this LLC. I made investments using this solo 401K funds. I received Form 1099INT  and Schedule K-1. 

For 1099INT, these should be tax-exempt interest since they are from solo 401K funds.

Should I still enter these amounts under "Tax-exempt interest" ????

How should I handle Schedule K-1 ?