I have seen that in the bios of countless systems that never came with floppy drives. Including the similar system I had, my last floppiless notebook and my current tablet PC.
I don't recall the brand name of the system I worked with, but it had a 14" touchscreen and the system was sort of a brick without external drives, all the components were laptop ones. I had two of them, one had the screen and keyboard on a pole with the brick in the base and the other had all the same components (minus the pole) in a suitcase with foam inserts (both were Pentium 166 era hardware running Win 95). I had picked them up at a pawnshop for $150 each and they brought me about $700 each when I resold them on ebay (this was a LONG time ago).
The basic dos install and copy the win-98 (or 95) install files onto the hard drive is MUCH easier than trying to find the accessory floppy drive that may have been available with that system (but probably wasn't serial, the complete lack of serial floppy drives on ebay says a lot about that).
You will probably still need to pick up a 2.5" to 3.5" adaptor to copy your files, but it will be way easier (and cheaper) than trying to deal with an external floppy.
The reason it may work out is that when I access the BIOS, the CPU screen shows the A:\ drive is 1.44MB floppy so it seems it would be ready to go if I had one to try. It's at least worth the effort 