Because as shown in the dialog, your image is 2 inches if you print it at 1374PPI. The figure you give hints that it is printed at 600DPI which could be the maximum that your print driver allows.
If you want the image to be 2" high at 600DPI, then scale it to 1200 pixels high.
Another solution is to export the image, open a word processor, insert the image and set its dimensions in the word processor, and print the page from the word processor.