Unable to activate phone update required

Anyone know how to fix this or what the problem is? I've tried updating it through itunes several times and still can't figure it out. I use to use the phone like half a year ago and traded back with my step mom so when she gave it back i was able to unlock it and get into it but I decided/tried to update it and factory reset it just to get her stuff off of it and now I can't get back in it...