Indeed, this question is about the acidity of phenols which is largely affected by the stability of the conjugate base.
The conjugate base is a phenoxide and if the negative charge on the oxygen can be stabilized by electron-withdrawing group (to decrease the charge density) then it will be stable.
Because the nitrogen atom on nitro group is +ve charged, it strongly electron withdrawing and thus the phenoxide is made stable
BTW, ethoxide group (i.e. OEt) is electron donating. Sometimes, you cannot judge only based on the electronegativity of the atoms.