You get the error because literal integer numbers are treated as int by default and int does not implicitly cast to short because of loss of precision - hence the compiler error. Numbers featuring a decimal place, such as 1.0 are treated as double by default.
This answer details what modifiers are available for expressing different literals, but unfortunately you cannot do this for short:
C# short/long/int literal format?
So you will need to explicitly cast your int:
myShortInt = Condition ? (short)1 :(short)2;
Or:
myShortInt = (short)(Condition ? 1 :2);
There are cases when the compiler can do this for you, such as assigning a literal integer value that fits inside a 
short to a 
short:
myShortInt = 1;
Not sure why that wasn't extended to ternary actions, hopefully someone can explain the reasoning behind that.