If I selected the free file option and get to the last page but can not file without selecting to up grade, how do I proceed if I do not want to upgrade?

You only have 2 choices, Either pay for the upgrade or do not take the deduction that comes with the upgrade. You would have to delete that schedule and continue with your return. But if the amount of refund for that schedule is more than the amount of the upgrade it may be worth upgrading.