Hmm, you would be in the second year of the program. Say for example, you got into the Honours Bachelor of Sociology program, which is four years. You were in Social Sciences I in first year, and now you will be doing three more years; not four. I think OSAP is just asking what level you are in, not where you are in terms of a program, 'cause realistically you could change your program every year.
However, I could be horribly wrong haha -- can anyone confirm that?