LaQuita, first of all, welcome to SiCK!
I am also puzzled by the hoop size and font size. Are these built-in fonts? The only thing I can figure out is that because a font is designed to create text, the smaller font size would produce your final text in a size small enough to fit in the 4x4 hoop. It really shouldn't matter what size font is used as long as the final product fits inside your hoop. (The small 4x4 hoop easily can be turned at a 45* angle to "increase" the available width by embroidering corner to corner rather than edge to edge.)
Never give up, never surrender.
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