Retirement tax questions

@DaveF1006  For Box 7, shown below, for Traditional IRA convert to Roth IRA, do we choose #2?

Select a code_#2 early distribution (except Roth IRA),

am I right?

And also, when I continue, it shows 

"Based on your entry for box 7 on your 1099 R, you don't need to pay any extra taxes on the money taken out of this account. " which makes me very confused.

Thanks for your help!