Course settings - Groups
To create Groups, first go to the Administration Block>Edit Settings>Groups. Then fill in fields. Then you can go back to Users>Groups>Create groups. After that click add/remove users to add students to your Groups.
We generally recommend leaving these settings as you see above.
The group mode defined at course level is the default mode for all activities within the course. Each activity that supports groups can also define its own group mode, though if the group mode is forced at course level, the group mode setting for each activity is ignored.
Force group mode