First set up an Apple ID see this article Create and start using an Apple ID - Apple Support
And then create an iCloud account Set up iCloud on your Mac - Apple Support
Then click on finder from the dock , open system preferences > click on I cloud you will see the box of iCloud Drive - next to it is an option button , just click on it and check all the boxes of them .
Also in your screen shot , mails ,notes , safari , the very important keychain is not checked , in the question you have not asked to set up the iCloud Keychain but you should enable it ( as all passwords will be stored in the keychain access ) .
Make sure you must first create a web mail account , like gmail see this article Create a Gmail account - Gmail Help
Make sure keep Apple ID address same as gmail address .
Also when Apple ID is created , it will prompt to create questions and answers , your month / day / year of your birthday correctly .
Fill up the credentials and write down in a safe place ( diary ) , also while creating the Apple ID a rescue mail address is always required see this article About your Apple ID email addresses - Apple Support , in case if Apple ID is locked , you can recover the Apple ID account from it , so make a new web mail id and add it in your account .
And note down each Apple ID address , icloud address and their passwords ( write down them in the diary ) , they should not be lost .
Read these articles About Apple ID security questions - Apple Support
Update the birth date associated with your Apple ID - Apple Support