On the page that follows, you must answer Yes when asked if you inherited. Failing to answer Yes causes TurboTax to treat the distribution as coming from your own IRA and apply your basis in nondeductible traditional IRA contributions.
Don't be misled by the poor wording of the question that seems to be asking is you inherited from a financial institution. It's asking if you received the distribution from an inherited IRA, reported with code 4 in box 7 (which TurboTax should already know since you would have entered the code 4 in box 7).
