No version of Pages can generate an index.
Pages v5.6.1 (current) does not provide intradocument links (bookmarks) from TOC names to their corresponding document location, but the associated page numbers do link to the respective page. However, on export to PDF, you will lose the page number links in the TOC, essentially making the PDF useless. No version of Pages v5 provides auto-capitalization of new sentences, linked text boxes, or even facing pages (alternate headers).
Either consider Pages '09 v4.3, or any non-Apple word processing software that offers index generation, and the functionality that you require for book completion.