Ah, you have the wrong compiler selected. It's C:\lazarus\fpc\2.2.2\bin\i386-win32\ppc386.exe
But this is the x86 specific compiler. Change it in the Environment Options dialog to the generic front end which will choose the correct compiler:
C:\lazarus\fpc\2.2.2\bin\i386-win32\fpc.exe
Or you can also choose the arm cross-compiler.