So close

I am so close to having this installed. Once I reboot and hold down option I am getting all of these options. (probably because I keep trying to redo it.) No matter which one I click on it goes to Macintosh HD right after this. One time I held down option and control and I think that made the HD the default.

I'm new to this but I know I'm so close. I am stuck at this step.

Also I am not able to get my USB Drive to appear no matter how I format it. I am probably doing that wrong too.