Those would appear to be instructions for Apple Music. In iTunes for Windows Edit > Preferences > Advanced should load the screen you're looking for.
Note that iTunes cannot play files without adding them to the library first. If you turn this option off you will break the connections to the library if you modify the source folders. It is generally best to either let iTunes make its own copies, or move/copy your files into the iTunes Media folder before adding them to the library, or by way of the <Media Folder>\Automatically Add to iTunes folder, so that when it comes to moving your library at a later date all of the media is in one place rather than scattered around in different locations.
tt2