This forum is targeted toward discussions related to the development of SwitchYard itself. Please see Before You Post to SwitchYard Development for more info.
That said, the runtime version configures the version for the SwitchYard dependencies in the project's pom.xml. Based on the screenshot, it looks like you're using an older version of the tooling. I'd recommend using the latest tooling, along with 1.1 for the runtime version (the latest tools support 1.x). Here's a link to a tutorial that should get you going quickly Tutorial - SwitchYard - Project Documentation Editor.
Hope that helps.