How do I set up an Apple ID for my 8 year olds new iPad Mini?

My 8 year old daughter got a brand new iPad Mini for Christmas and I'm trying to set it up for her to use. I keep getting a notification saying that I nee to create a Family Sharing Group from another device that has iOS 8 or later... my device is iOS 7 and am not getting an option in my iCloud setting to create a Family Sharing Group. I'm not sure what I can do since I can't make an apple ID for my daughter on her iPad mini getting started and setting it up for use...

As stated in the message your received (as you mentioned above), you need to use iOS 8 to setup/use Family Sharing. If you are using iOS 7, you cannot setup/use Family Sharing. To setup/use Family Sharing, you must update your devices to iOS 8.

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