The THIRD LINE denotes how the model will be estimated. In the text above, ALL indicates that all of the items in the data file will be examined. To delineate particular items to include, one would list them as follows: "IT=(1,2,3,4,6,7,8,9,10)" where the 5th item is excluded from the analyses.
Because we wish to use the SGR model, "GR" is indicated and then the number of categories (options) for each of the items is provided. Since all of our 10 items have 5 options each we type "NC=(5,5,5,5,5,5,5,5,5,5)". One shortcut that is possible in this case is "NC=(5(0)10)" which indicates the same thing -10 items, each with 5 options. If we had 5 items of 4 options followed by 6 items of 5 options in our measure we would indicate "NC=(4,4,4,4,4,5,5,5,5,5,5)".