You can change the colour of your ship by pressing the coloured buttons (
,
,
,
) on the Xbox controller, the colour of your ship will match the colour of the button you press.
= Green
= Red
= Blue
= Yellow
To remain alive in this level, your ship must be the colour of the laser that passes over you. Although, I don't believe how many stars you have matters in this level, once you die the achievement should pop!