Mary Beth, United States records often list Russia as the birthplace for pre-1917 immigrants from any country that was part of the Russian Empire. Many of my relatives came from Lithuania, but after they came the US records all show them as from Russia. You're lucky - most of the US records I've seen don't show a town or state - they just say "Russia".
Sorry I can't help figure out what this draft record says, but several others have already taken a good stab at it. Since you identify your great grandfather as Polish, most likely the country was Poland, which I would describe as "City, Poland, then part of the Russian Empire." in the biography and show in the data section as "City, Poland, Russian Empire" (using the Russian language for it).