Our braincells all take a break sometimes, but this is not a stupid question!
You're just thinking a little too big in this case. All they mean is: in your microflow, create an AccountPasswordData object, and in the "Create Object" action, make sure you set the association with your TeamMember so we know who the accountpassworddata belongs to. It's the third action in this screenshot:
I just can't figure out what I am missing so here are some pictures.