Trouble with resetting iPad 2 to factory setting without a passcode

Hello,
My mother passed away and I'm trying to reset her iPad2 to factory settings without a passcode so I can give it to my grandmother to use.
I've got iTunes open and the iPad is in recovery mode. However, when I click "Restore iPad", it prompts me to open a file on my laptop. Not sure what it's looking for...
Any idea what I'm doing wrong?
Thanks!

The following instructions from iOS: Forgot passcode or device disabled may help:
Also, be aware that if Activation Lock is enabled, recovery mode will not disable that. iCloud: Activation Lock
Use recovery mode
Follow these steps if you never synced your device with iTunes, if you don't have Find My iPhone set up, or if you can't get to your own computer. You'll need to put your device in recovery mode, which will erase the device and its passcode. Then you'll restore your device as new or from a backup.
Disconnect all cables from your device.
Turn off your device.
Press and hold the Home button. While holding the Home button, connect your device to iTunes. If your device doesn't turn on automatically, turn it on.
Continue holding the Home button until you see the Connect to iTunes screen.
iTunes will alert you that it has detected a device in recovery mode.
Click OK, then restore the device.

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Trouble with resetting iPad 2 to factory setting without a passcode

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