Earlier quoted context omitted.
If DPI means “dots per inch”, then how can the size of the screen come into it? And what is “not true”?
As the phrase "dots per inch" implies, it's a ratio. Specifically, it's the ratio between your resolution (say, 4K) and the size of your screen. What is "not true" is that every screen's pixel density is the same. Different screens have different sizes and resolutions, which means they have different pixel densities.
DPI is a resolution. It is not the ratio between resolution and size. It already has the units of resolution: 1/length.