Please help! Mwife and I do not understand NC-4EZ tax form whatsoever

I’ve tried googling and researching but I can’t seem to figure out or understand what the heck we are supposed to do here. We just moved to North Carolina and my wife is working on her new job’s employment and tax forms. We have 1 child. We’re stuck on this box that has “# of children under age 17” (this one’s easy, we figured this out). But underneath it says “# of allowances” and has different income brackets. For some reason she seems to think she needs 3 allowances so she circled a “1” in each income bracket from 0 up to her own (60k-80k). Is that correct? Or does she ONLY circle a number in her own bracket, and if so, does she circle a 1? 2? 3?

Any help and understanding is very much appreciated, as I will also need to do this next week as well!