The return is asking for Exempt-interest dividends from payee 3 - what is this?

[SteamTrain]

Go back and edit any 1099-DIV form that has any tax-exempt interest in box 10.  On one of your -DIV forms, there is a followup page where you need to select what state issued  the bonds that produced that interest value. 

 A selection of "More than one state" during the interview is always acceptable if from mixed bond funds.  (at the END of the list of states), but if box 10 is a large value, it may be worthwhile to break out the $$ that came from your own state's bonds.