I didn't file last year so how would I respond to the question, " Did you take the standard deduction last year, or did you itemize your deductions?"?

The safer bet is standard deduction, assuming you have no other choice. It will not open you up to other scenarios.

Where is it asking that?  That is usually when you enter last year's state tax refund.  But you didn't file so you should not be trying to enter one.  Did you get a 1099G for something like unemployment?  Did you get a Refund or payment for something else, like for an older year?