Trouble syncing music to ipod nano

in iPod + iTunes + AppleTV edited January 2014
When I try to sync my ipod nano a box comes up that says "The ipod is synched with another itunes library. An ipod can be synched with only one itunes library at a time. What would you like to do"-

1. "erase and synch replaces the contents of the ipod with the contents of this itunes library."

2. "transfer purchases copies itunes store purchases this computer is authorized to play from this ipod to this library."

When i tried the first option it erased all my music and I can't get it back. I don't think the 2nd option is what I want. What should I do?


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