I don't think it's a problem with jumpers on the hard disk. This is a SATA hard disk which doesn't have jumpers. Even if it were an IDE disk, if the jumpers were incorrect it would not appear in disk management, like it does in the
disk managment.JPG image.
You can't format unallocated space.
First you right click the space and create a new partition. Don't make it a dynamic drive or a logical drive, just a basic "primary partition" type, to avoid problems in the future. Then you format the new partition as NTFS and it will be given a drive letter.