Macbook Pro 2011 Partition Disk0s2

When I embarked on a disk utility > erase with security 2 nights ago I never thought it would be such a royal pain and leech of time to complete the process so I could pass on the old 2011 Macbook Pro and begin enjoying the new one I just received, decked out for video editing with Adobe Creative Suite.

So I started the disk utility and erase with security process around 2:30 Thursday and it began going through its stages. 12 to 13 hours later, I was in bed, I awoke excitedly to see what the status was, expecting the next step, and I read that the erase was a failure.

Not knowing what to do I basically shut down the macbook pro. Later I started it and the Apple chime emits but there is only a question mark blinking. Not the apple logo.

I restarted again with command + R pressed and then it began an internet recovery.

So now I'm situated with a disk that looks like this:

I've got hardware fright now. I"m not sure what to do. I know, from trying to speed read through as many support posts, that I probably need to Erase. But which one? The 500GB Toshiba I believe is the one I erased originally that ended in "FAIL". The 2011 MacBook Pro is the Mac OS Extended Journaled volume and I believe was created (because I remember typing in the description of "2011 Macbook Pro") during setup of the "erase + security".

So do I erase the 500 GB Toshiba again?

or do I erase the 2011 MacBook Pro partition volume?

What if I used restore instead of erase. For now, when it tries to install an OS x, it goes to lion, then says its temporarily unavailable where you learn there is an option for a $20 disk. I"m not clear if thats an upgrade or an install disk.

Hm. How am I going to dig myself out of this conundrum? Would anyone care to lead the innocent though the dangers of macbook challenges?

any assistance would be greatly appreciated.

Kind regards

Mary