I do not see a create Jira issue option when highlighting a text in Confluence page
That typically means you don't have an applink between Jira and Confluence.
Steve is correct. In order for this to function you will need to make sure that you have linked JIRA to Confluence. If it not working after your application link is in place you will need to make sure that the JIRA Integration Plugin and Confluence JIRA Plugin are enables and all their modules dealing with linking are enabled.
Learn more about application links here: https://confluence.atlassian.com/adminjiraserver071/using-applinks-to-link-to-other-applications-802592232.html
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