The whole question is:
c. Is the beneficiary an H-1B nonimmigrant exampt from the Dept. of labor Attestation requiremnts? No Yes
1. If yes, is it because the beneficiary's annual rate of pay is equal to at least $60,000? No Yes
2. Or is it because the beneficiary has a master's or higher degree in a speciality related to the employment? No Yes
Here the "Exampt" does not mean "H1 cap-exampt", but "exampt from the Dept. of labor Attestation requiremnts". See: http://cfr.vlex.com/vid/655-737-attestation-willful-violator-19660317
Because your degree is master or higher, your answer is say "yes" to the Question "c." and Qestion "2", and say "No" to the Question "1".
