#1
Uses your typeface name [and designed typeface] as headline/display face, and paragrapgs, sentences and phrases in other appropriate Adobe typeface. These will all relate to,and be appropriate for, the emotion

#2
Uses your typeface name [and designed typeface] as headline/display face, and individual words relating to the emotion [also in other appropraite Adobe typefaces]

#3
Uses your typeface name [and designed typeface] as headline/display face, and syllables relating to your emotion in some way [also in Adobe typefaces OR your designed face]

I've already created the type face its called "Hyper-shift" And the mood is "Hyper" hyper being Over; above; beyond. Not jumpy like i'm excited. I picked that because the strokes extents from the letter, "Hyper" extent.... yeah its a little lame

Honestly I think my instructor was high when he wrote this, I do not really understand what the layout instructions really are.
So how should I do this?

I've got Layout #2 done
Honestly... I'm just gonna be straight up with this. I didn't ask what the project is about.... I asked if anyone has any ideas of how to do it.

I'm not confused, I'm out of ideas.

If you're confused, talk to your teacher/professor about it. I'm sure he or she can explain it to you, and probably give you an example of what the you're supposed to do.

From what I gather from you've listed here I'm guessing the point of the assignment is to use the typeface that you created to demonstrate the mood or style that it is supposed to represent. It is one thing to say that a typeface that you created is designed to convey a certain type of mood, but actually using it and having it reflect that mood is another story. I think that's what the point of this assignment is.