1) Along the side content menu, you have selected the Footer Page content, you need to select the Privacy Policy content just below it
2) You have deleted the Header and Content content areas for the footer Page template.
for the Footer Page template, create a new content area named "Header" and another Named "Content"
in the content menu list, along the left side, select the Privacy Policy content page
Edit the "Content" Content area to the Privacy policy text you would like to show.