These are two completely different things.
The 'K' is in File Settings, and stands for 'kilobytes'. If you check the box next to it and type, say, 4096 in the box, then the compression Lightroom uses to export will be the lowest it can go (so best quality possible) while keeping the file size at or under 4096 kilobytes (4 megabytes).
To set the dpi, just go further down to Image Sizing, then next to 'Resolution:' type 72 in the box, and make sure that 'pixels per inch' is selected in the drop-down menu.
By the way, that dpi setting means absolutely nothing, if you don't tell Lightroom to resize the photo to a specific canvas size (inches, not pixels). I'm really surprised that the magazine even requests that.