A friend bought second hand macbook air mid 2011 with crossed circle on the display, we tried recovery from partition and same thing happened, after internet recovery it stays the same except now it asks for password for boot option, what happened?

A friend bought second hand macbook air mid 2011 with crossed circle on the display and give to me to try to recover the system, I tried recovery from partition and same thing occured, after internet recovery it stays the same-crossed circle after reboot, then we tried to boot from USB with mac os 10.8 on it, it installs something,like it has being finishing installation, rebootes, and now it asks for password for boot option.We have no idea what that password could be.What happened!!!

I forgot to write down my computer specs:
iMac 27 Mid 2011
2.7 GHz Intel Core i5
4 GB 1333 MHz DDR3
AMD Radeon HD 6770M 512 MB
OS X 10.9.2

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