Doug,
I know the area well. IMO, I would check box 4 for a grading insepction, They do not cost much money and most of the people that do it will do it for free in the area in hopes of getting someone to get gradding done. I would check with a local grounds keeper or lawn care company on what it would cost. It may not have been an issue when you inspected, however, Hurricane season starts in 4 days.......
We don't have hurricanes in CA. Only Santana Winds, fires, earthquakes, occassional flooding around the rivers and illegal aliens.
However, if this is an FHA loan I think you must report what you saw....especially the lack of drainage away from the house.