Resetting MacBook Air to factory settings

Hi,
I wish to reset my MacBook Air to its original factory settings as I cannot get rid of this Java 3.16 update virus that stops me from streaming videos online.  I have already copied all my files to an external hard drive, so am not worried about losing anything.  I do not appear to have any backups on my Time Machine, so this doesn't seem to be an option for me either.  Please advise in plain english how to proceed as I only have a basic understanding of Mac systems.
Thanks

Why do you think you have a Java virus?  Before doing an erase and reinstall, you might try going to Thomas Reed's site, http://www.thesafemac.com and check out his information on Java and problems you are having.  If that does not help, then erasing and reinstalling will definitely clean things up.
To 'reset to factory settings' you must erase the internal storage and reinstall Mac OS X and your applications.
What version of Mac OS X did your MacBook Air come with, was it Yosemite as noted in your information bar?
If it was Yosemite, you can restart the MBA and hold the Command and R keys, that will startup on the Recovery HD, a hidden partition on the machine.  Then select the Utilities drop down and then Disk Utility.
Highlight the internal storage, MacIntosh HD, in the left panel of the Disk Utility window, and then Erase.  That will remove the information on the storage.
Then quit Disk Utility and select Install Mac OS X from the utilities drop down and that will reinstall Yosemite.  After that you will have to restore your applications from your backup copies.  But, be careful what you reinstall so you do not reinstall the problem software.

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