To find out which version of PowerShell is installed in your computer, you need to do more than just run it. When you start the command line interface, your lead to believe that version 1.0 is installed from the directory location displayed in the dialog box.
The text in the dialog box shows C:\WINDOWS\system32\windowspowershell\v1.0\powershell.exe, which would make it seem like you were running version 1.0. The best way to determine which version is installed is to run the PowerShell command line interface and execute the following command:
This will give you the major and minor versions, along with the build and revision.