Unless I'm mistaken, don't you have to attach the additional form if you select YES to this question? I'd say confirm if you should do both - add the additional filled out form and the explanation letter. This would be the 'safest option'.
Yes, as the form says "Please fill out CIT-0177". So fill the form out, most of the field will be "Not Applicable".
I went through the form, it is just SUPER crazy filling out that form, as most of the information, they are asking for govenment employee's information.