Transferring Apple Watch

Hi! My sister gave me her Apple Watch after wiping it and disconnecting it from her Apple ID, etc., but when I go to pair it with my own phone, it gets as far as an “Activation Lock” page where it tells me that the watch is still linked to my sister’s ID. (see attached photo) The watch doesn’t show up under her devices on her Apple page and is disconnected on her phone. Any ideas on how to proceed? Thank you!