Adding criteria to a drop down menu - Typolight 2.7.6

Hi out there! Wondering if someone could tell me how to edit a dropdown for a record. Within my catalog, I have several fields and one of them is "State". Years ago the programmer set this up and only gave the client 2 states to choose from on the drop down (MS & TN). Now they want more options and I (just a lowly graphic designer) am not clear on where to go to add them. I do have administrator access. I've attached a module & taxonomy screen shot. From the taxonomy screen shot, they don't look any different and I don't see where to "activate" the other states... ? Any help would be greatly appreciated! LB