OK...I just looked and my blog is already set for "no" word verification. Why it's asking for word verification now is beyond me. I went ahead and tried checking "yes" for word verification and then immediately changing it back to "no" for word verification and saving it again. Maybe that will do it?
Meanwhile, I found this lady's blog and she tells you how to change it. She must have been having the same problem as me. The bad news is that you can't change it from the new Blogger Dashboard. You have to go back to the old one in order to change it. Does that mean when they eliminate the old one we will all have to have word verification?