I am not sure where you want to place these drop downs. But assuming that you would want them on a different sheet in you workbook, you could use the following macro.
Option Explicit
Sub CreateDropdownsInSheet()
Dim SourceSheet As Worksheet
Dim TargetSheet As Worksheet
Dim i As Double
Dim DropDownRange As Range
'Define Source Sheet and Target Sheet
Set SourceSheet = ActiveWorkbook.Sheets("Sheet1")
Set TargetSheet = ActiveWorkbook.Sheets("Sheet2")
'Loops through the source sheet
For i = 1 To SourceSheet.Cells(SourceSheet.Rows.Count, 3).End(xlUp).Row Step 1
If SourceSheet.Cells(i, 3).Value = 1 Then
'Gets range for dropdown
Set DropDownRange = SourceSheet.Range(SourceSheet.Cells(i, 2), SourceSheet.Cells(i, 2).End(xlDown))
With TargetSheet.Cells(TargetSheet.Cells(TargetSheet.Rows.Count, 1).End(xlUp).Row + 1, 1)
'Names group
.Value = SourceSheet.Cells(i, 1).Value
'Populates dropdown
With .Offset(0, 1).Validation
.Delete
.Add Type:=xlValidateList, AlertStyle:=xlValidAlertStop, Operator:=xlBetween, Formula1:="=" & DropDownRange.Parent.Name & "!" & DropDownRange.Address(External:=False)
.IgnoreBlank = True
.InCellDropdown = True
.ShowInput = True
.ShowError = True
End With
'Selects first element in dropdown list
.Offset(0, 1).Value = SourceSheet.Cells(i, 2).Value
End With
End If
Next i
End Sub
If you change the sheet names of the SourceSheet and the TargetSheet variables in the code to fit your workbook (I assume that the target sheet is an empty sheet) and run this macro, the list you are looking for should be created in the target sheet.