How to create groups
From the Course Overview list, click the course you would like to create a group in. Then, click the gear icon at the top right side of the page and select the More option.
Under Course Administration, click the Users Tab. Then, click the Groups option. To create a group, click the Create Group button under the Groups column. Then, enter a group name and click Save changes.
To add students to your group, click the group in the Groups list. Then, click Add/remover users under the Members Of column.