Hi Johanna,
The "Inland flooding" module is the option you should normally use when you have a MIKE FLOOD license. If you have a standalone MIKE 21 FM license (without MIKE FLOOD), you should not use this module.
In MIKE 21 (Classic version), the Inland Flooding option triggers a different way of handling Flooding and Drying. However in the FM version, in version 2014 SP1, the Flooding and Drying options are independent of this module: so with this version, you should simply untick the Inland Flooding (because apparently your license doesn't need it), and then you are free to select the Flooding and Drying option you want in the "Flood and dry" menu.
Best regards,
Mathieu