In order to prevent DOS attacks, ISP infrastructure routers often don't reply to the pings themselves, or do so in a very limited fashion. "Ping" traffic will often be shunted to another device for responding, or the device itself will only respond to x number of pings per some time period.
If you are getting no dropped packets at the destination address, but are seeing dropped packets on one or more hops to the destination, you can (generally) ignore the dropped packets on the way. But only if you are seeing no lost packets at the destination.
And I don't recall what the options are on the screen you describe, but I doubt you want anything other than the defaults.
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