XF 1.1 How would i create a forum section like this....

That's a category, not a forum.

A sibling is at the same level as other nodes, i.e. brother and sister are siblings.
A child is as the name suggests, a child of the parent, the next level down.

Parent A (sibling of Parent B)
Child 1 of Parent A (sibling of Child 2)​
Child 2 of Parent A (sibling of Child 1)​
Parent B (sibling of Parent A)
Child 1 of Parent B​
 
You can't convert node types, so you will have to create a new category and change the parent node of the forums you want to move into it.
 
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