reset my ipod touch and now won't connect to itunes

I reset my ipod touch because I wanted to give it to a family member. 

After I reset it, I got the icon to connect the device to itunes.

I connect it to itunes and it is not recognizing the device, it states "iTunes could not connect to this iPod touch. You do not have permission."

I have tried restarting the device, holding the home button etc. 

Nothing is working.

 

Please help!

Thank you!

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