So I was approved for AdSense and it says that I need to create an ad an place in on one of my active hubs, but I cannot figure out how to do that.
No need to place ads, HP does that. You just have to make sure your Adsense (and HP Ad Program if you are going to use it) are activated. You do that at My Account, under Earnings and Settings.
There are details in this Learning Center Hub about configuring AdSense for your account. http://hubpages.com/learningcenter/signup-AdSense
This is only possible if you've a blog or website. Did you apply with your own blog or site? If so, it's easy to create an ad. Google will guide you on how to create one. You'll get a code after creating an ad. You're supposed to place the code on one of your pages or posts (HTML section), and wait for the final review.
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