Hi KimmG, and welcome to the forums!
You've got a good eye. That is a fake email. You can forward it to spoof@paypal.com and delete it from your inbox.
A big tip-off is the fact that the email addressed you as "Dear PayPal Customer" instead of by your first and last name. Another tip is that the email instructs you to open a program on your computer.
Good job listening to your instincts and not falling for the phishing attempt! For more information about protecting yourself from phishing, check out Your Guide to Phishing.
Olivia
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