If it answers the question...
... but it's wrong, down-vote it. In addition (or in alternative if the mistake is not so critical), add a comment as well so you help the answerer fix the answer.
... but it's low quality, you can down-vote it and/or vote to delete (if you are a trusted usertrusted user), in case you don't have enough reputation, flag it for moderator attention and choose "very low quality".
Additionally, whenever it's possible, you can edit the answer. This is encouraged. Don't forget that editing shouldn't change the basic meaning of the post so if it's completely unsalvageable, just go with the hard way.
If it doesn't answer the question...
... vote to delete it. It should be a comment or deleted altogether.
Now, regarding your question, you should choose "looks good" in my opinion. Neither of the options look good because you're using the Review tool to evaluate whether the answer is right or not, while it should be used to evaluate the "Good quality/Bad quality" which is tied to the answer being written well, etc, and not whether it's correct or not.