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That is a Google Adsense block. Go to Graphene Options >> General >> Adsense Options and either
1) Untick box that says "Show Adsense Advertising"
2) Add Adsense code to box labeled "Your Adsense Code"
Keep in mind that it can take from one to seven days for Google Adsense to actually populate your site with ads. So if you have added code and it hasn't shown up yet, be patient.
That is the space for AdSense ad. Disable the AdSense ad placement in the Graphene Options > Adsense Options and that space will be gone.
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