Hi, here's a more detailed guide on how to update from 5.1 to 7.0 android.
Warning:
Your BOOTLOADER will be relocked after upgrade from Android 5.1 to Android 7.0 and you will have to apply to xiaomi for unlock permmision. After you apply and receive the sms from xiaomi you will have to unlock your bootloader with Mi Flash Unlock app and then you will be able to install TWRP 3.0.3.0 and only then you will be able to install new updates.
I'm guessing you don't have TWRP installed yet. From the image you posted you tried to install TWRP 3.0.3.0, but this works only if you have android 7.0 installed, it doesn't work under android 5.1.1.
0. Download the new miui version thet you want to install eg. Miui 8.3 7.2.23 android 7.0 see download link
https://www.androidfilehost.com/?w=files&flid=156817 and download file
xiaomi.eu_multi_MI4c_7.2.23_v8-7.0.zip
00. Copy the file into your phone for example into your download folder in the phone.
000. I'm guessing you have installed adb (ussualy C:\ADB)
1. You have to install TWRP 3.0.2.0. Here is the link, download it-
https://www.androidfilehost.com/?fid=24572369242686317
2. Copy the file "twrp-3.0.2-0-libra-aqua-20160612.img" into your adb folder and start cmd window into adb folder (press SHIFT+ right click mouse and you should see an option: open command window in here)
3. enable USB debugging and connect the phone to the pc
3.1 check if adb is working from cmd window - adb devices
3.2 you should see a code
4. reboot bootloader from cmd window - adb reboot bootloader
5. now you should see the fastboot rabbit - check to see if fastboot is detecting your phone from cmd window - fastboot devices
Now you shoud see the same code from 3.2
6. install TWRP or you can just boot into twrp, but it is better to have it installed -
fastboot flash recovery twrp-3.0.2-0-libra-aqua-20160612.img
or you can just boot into recovery without installing by the command:
fastboot boot twrp-3.0.2-0-libra-aqua-20160612.img
7. now you should be able to enter into the TWRP recovery
8. go to install and look for the folder where you copied
xiaomi.eu_multi_MI4c_7.2.23_v8-7.0.zip
9. select the file and install: see the uploaded image
10. two red errors will appear, but the image will be installed
11. after the file is installed you will see two options wipe cache/dalvik and reboot system
12. press wipe cache/dalvik
13. when its finnished with wipe you should see the option to reboot system
14. it will ask if you want to install super su, hit the button do not install, because if you swipe to install super su it will cause errors and posible brick
15. first boot will take a little longer 5-10 minutes.
16. you bootloader is now locked, because you updated from android 5.1 to android 7.0 you will have to apply to xiaomi for unlock permmision.
17. after you apply and receive the sms from xiaomi you will have to unlock your bootloader and then you will be able to install TWRP 3.0.3.0 and only then you will be able to install new updates.
Hope this helps and good luck!
