AVG reporting Malware in settings app! Android 4.2.2

[Guest Alien Droid]

Hi
AVG is telling me I have Malware on my tablet!
Android 4.2.2

I’ve purchased a new tab off a well know auction site for a relative and I’ve been prepping it before I hand it over to them.
BUT. I noticed when I first installed AVG which was the first app I installed it reported the Tab was rooted.
The seller didn’t list this fact.

I’ve been installing apps like crazy but only from play.google.

Today I started a download that didn’t go ahead off google play, I only then noticed AVG had a message for me which then warned me of 2 threats. Not sure if the warning was there before I tried to download!
1. is the old warning about rooted device which I remember selecting in AVG to ignore but AVG is warning me again!
2. is a Malware warning for “Settings” app.

AVG is offering me to “Uninstall” to remove this app, or ignore.

Should I ask the seller why he had rooted the Tab?
Should I un-install Settings app? (I’m not sure if this will screw the tab up or is it just removing the fake Malware version and not the original? No detailed info from AVG is very unhelpful, no date, no time of infection and no file names etc!

Would appreciate some advice on sorting it out, but I’ve installed a lot of software so there will be a lot of wasted time spent.
Saying that if the best way is to start from scratch then so be it, but would like to avoid if possible.
Thanx in advance for any help on this.