"Challenge not yet complete... here's what's wrong: 
Account setup for challenge incomplete. Please add 'Prospect', 'Customer' and 'Pending' picklist values to the Account 'Type' field"

Working on the challenge for 
Process Automation: Routing Records with Approvals

Everything is lock-tight except for one detail pictured in screenshot.

I felt like I tried every permutation in the book to fix this (all acounts are synced, all process is in order, I have reset, redefined and created everything that seems feasable) but apparently I am missing this, or it would have worked. Any advice would be greatly appreciated.

Thank you!