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I tried to install it on a computer with Windows 7, and I got the same message.
So yes, it seems that the latest version of ISS IoT does not support Windows 7. And I didn't find any information about it, so I will inform this to the right team to add it to the information available to avoid confusions with the users. Thanks for letting us know.
For Windows 7:
(I downloaded 8u112)
Docker (download this, the latest release works only with Windows 10):
Intel System Studio IoT Edition:
(either iss-iot-win_3-24-16.7z or iss-iot-win_3-14-16.7z)
Install the first Java, then Docker, finally unpack Intel System Studio in C:\
At the first start answer YES to the request of updating the libraries.
If you setup a further PC with Windows 10 you can import your existing projects using File->Import->General->Existing Project into Workspace.