What is the IT-225 form asking me to write when its asking for a Sch B part 2 code??

This refers to an adjustment to the dividends that you entered. The choices are Nominee, Other adjustment or ESOP. If you enter a number as an adjustment, even "0", you have to choose one of those options. It is a New York state error, but you correct it on your federal return. 

To correct this:

1. Open your return and select Federal on the left side menu.
2. Select Wages and Income toward the upper left.
3. Scroll down, or expand the list and find Interest and Dividends.
4. Expand that section and find Dividends on 1099-DIV.
5. Click on Edit to the right.
6. Click Edit to the right of your 1099-DIV entry. 
7. Go through the section and remove any 0 entries, leaving the fields blank. 
8. Repeat with any additional 1099-DIV forms.
9. Continue with your return.