I don't have the option to create a sandbox and here is my question below. Who can create a Developer org or a Sandbox org?
Anyone can create a developer Org by signing up for it and requesting. It is not connected to your Production org in anyway and is a base default org meant for development and testing.
Creating a Sandbox is depending on what sort of Org you have as defined here: https://help.salesforce.com/articleView?id=data_sandbox_environments.htm&type=5
You can also purchase additional Sandboxes beyond what your Org is setup as.