Forgot reset password

Then you'll have to wipe the phone and set it up as a new device.

HOW DO YOU WIPE THE PHONE TO SET UP AS NEW DEVICE?

The easiest option is to plug it into iTunes and use the restore function.

i.e. When the phone comes up in iTunes then select the general page and beside/under the update button is one that says restore. Click restore and set up an a new iPhone. This is the only way to get rid of the restrictions that you have on the drive. You have to set it up as new.