What does Did Rita Inherit the IRA from TD Ameritrade Clearing, Inc.? mean? Is this based on paperwork when I considered rolling over my IRA, and then changed my mind?

The question means that the program is asking you if this was always your account, or did you inherit it from someone else who passed away.

Sounds like the answer is no, you did not inherit the account.

It's asking if this was a distribution from an inherited IRA.  A code 4 in box 7 indicates that it is a distribution from an inherited IRA (which should make it unnecessary for TurboTax to ask this question, but TurboTax asks anyway).

Note that a non-spouse beneficiary is not permitted to roll over a code 4 distribution, so if you indicate that it's an inherited IRA and you are not the spouse of the decedent, TurboTax will not allow you to report the distribution as having been rolled over (which is fine in this case since you apparently did not attempt to roll this distribution over).