Struggling to set up a new iPad Pro 9.7 via iTunes backup restore option

I wish to migrate everything from my old iPad Air to a new iPad Pro just purchased.

I have ensured the latest IOS is installed on the old iPad and backed it up to iTunes. I then connected the new iPad Pro to my iMac and iTunes account, went through the Hello and wifi set up screens then selected the restore from backup option in iTunes. At this stage the process stopped with the following message

Am I being a bit dim - does this mean I need to go through a full new set up on the new iPad Pro as it is not running the latest IOS out of the box? If this is the case, can I then restore the back up from my old iPad onto the new iPad Pro, even though it has been set up as a new one?

Thanks in advance.