Hey @Kiara, your indentation is very wrong. Yaml files are very sensitive with spacing and indentation. 
Also keep your host as 'all'
- hosts: all
  tasks:
    - name: Setting up Security/Firewall Group
      ec2_group:
         name: aws_security_group
         description: Rules Allowing Traffic on port 22 and 80
         region: us-west-2
         rules:
          - proto: tcp
            from_port: 80
            to_port: 80
            cidr_ip: 0.0.0.0/0
          - proto: tcp
            from_port: 22
            to_port: 22
            cidr_ip: 0.0.0.0/0
         rules_egress:
          - proto: all
            cidr_ip: 0.0.0.0/0