Unlock iphone - have authorization but need help

I am trying to unlock my iPhone 5 so that I can pass it on to someone else.
I have gone ahead and backed up and restored the phone to factory settings just as a housecleaning step to clean out the phone .  After I did that I found out that the phone is going to someone else so I requested unlock authorization from my carrier ATT which I have received.
Here is where I am confused.  The instructions in the ATT email to unlock the phone states that I should backup and restore the phone again to factory settings.  The problem is when I connect the phone to iTunes on my computer I see different options. The screen is Welcome to Your New Phone and it gives me the option to:
Set the phone us as new
Restore from this backup (which shows my latest backup)
I do not see on this screen the option to backup and I thought I did not want to restore from a backup but needed to select restore iPhone.  So basically it seems like I put the carriage in front of the horse.  Where do I go from here? 

Okay, thanks.  I selected Set up the phone as new and now see the phone in my Mac iTunes. 
One more question, do I still need to backup the phone which will require me to set up the actual phone or can I skip that step and just restore phone?

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