The card you have placed on the reader has an old applet on it and this screen is telling you that you need to update to the newest one.
To do this, simply leave the card on the reader and click Update. This will bring up a new screen which will show you another Update button in the bottom right corner.
Click Update and it will take around 10 seconds to update the applet. Once this is finished, it should say "Operation completed successfully" in the status information at the bottom left of the pop up screen.
In the top left of the screen, it should display the current version of the card.
Close the pop up window and the test you selected will now load to the card and be ready for testing as normal.