Step 1: In the course section, click the plus icon and select "Group choice".
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Step 2: In the general settings, enter the Group choice name and the optional description.

Step 3: Under the Miscellaneous settings, configure the activity on how you want it to be shown to your students.
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Step 4: Under "Groups" select the groups or groupings you would like to be available options for the student in your group choice activity then click "Add Grouping" or "Add Group".
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Step 5: Once done with the configurations of the activity settings, click "Save and display".