L2 Task instructions subset confusion

In Task we are asked below: Create s G3 Location: Distribution Center? List Subset

Under the ---Try It Hierarchies--- category, create a new list subset: 

List Subset Name: s G3 Location: Distribution Center? 


I am hoping that we are asked to create a subset under G3 location and not another list under ---Try It Hierarchies--- ?



The reason I ask is in task I cannot verify my task as per below screenshot. The below is only possible if I create a subset and not a list with the same name