You're super super close. In this case you need to compare your LIST not your system MODULE to that grid. Open up your G3 Location List and switch to Grid View. It should look like this, or something like it.
Your System module looks great by the way! Perfect.
It seems like you have not set the Parent of 'G2 Country' List. Kindly set the Parent of 'G2 Country' List to 'G1 Region' . So to do that kindly navigate to 'General List' Section and set the parent of 'G2 Country' as 'G1 Region'.
You'll get the desired output as SIR @JaredDolich has shared.