Noncompete agreement - what should I do?

Well, strictly speaking you can strike out the non-compete and sign it, but if they see your strike-out, they probably won’t accept it.

As others have said, this is completely unenforceable. It is most likely inserted in there by a legal team that has created a boilerplate for employment contracts in the hope that it dissuades others from going to competing firms.

Do you really want to work for this company as an intern? If so, sign it, and if they come after you reply with something like “Are you really that incompetent?” which tells them you have a clue about how unenforceable this is. Otherwise, bring it up with them and say it is a sticking point. Do not accept a reply of “this is just standard language”–that tells you that lawyers are running the show which is never a good situation.

Disclosure: IANAL, but I have negotiated a number of personal and business contracts.