Hacked, not infected?

Not sure about needing "a solution".  (Read on.)

Long story short, one of Norton's "independent online technical support service providers" informed me that my Norton 360 AV had failed because my PC was hacked by a foreign IP...and "being hacked" is way not the same as "being infected".  Then, they wanted $199 for a two-year anti-hacking package.

Is this legit?  I seriously doubt it, although I am 100% sure my PC is mighty offed up. 

What to do?