you either have to have a "page" in your app (eg, label, webview, ...) with your privacy policy spelled out. you can make it accessible via the drop down menu, or
you need an actual webpage on your webpage server. if you don't have one, i think there are still free ones out there. just do up a privacy policy page and show the link somewhere in your app. it's easy. if you collect user data, you say what it is you collect. if you collect no personal data, you say you collect no personal data. done.