Premiere XML

In Resolve 17 I created a Premiere XML file. When I load it into Premiere I have two videos to select. Which one do I place on the Timeline: Hot Air Balloons MP4 or Timeline 1 (Resolve)?

Resolve will always export a Timeline, as this is how you import/export entire edits between applications. The new graded source clips will also be added to Premiere.
You seem to only have one clip, so using XML transfer is inefficient and unnecessary. You only need to render the single clip then import into Premiere.

If you double-click the Timeline, it'll open for you.

"You only need to render the single clip then import into Premiere. " If I do not export the clip as a Premiere XML and render it as H.264 video file, I will lose video quality when it is rendered in Premiere.

If you render it out as DNx or Cineform, you won't lose any quality.

Thank you. Your solution worked.