Right!
- With the Earth not in the system, the ball by itself has no gravitational potential energy.
- On the other hand, with the Earth not in the system, there are two external forces doing work
on it: gravity, which does negative work, and the force of the kick, which does positive work. The total work done (sum of those two) has to be equal to the change in the ball's total energy (if the ball is a closed system, as it is, in the absence of air resistance), which in this case is just the kinetic energy.
Go back if you want to look at the original diagram, and the remaining questions.
Go back if you want to look at the choice of diagrams for this choice of system.
Good job! You are done!.