By sitting on the chair, you recieve a tool named "Rope Selector." If you have ropes nearby you, you can click the ropes to place them on the Loom. When all 4 ropes are placed, you select an Awl, such as the Stone Awl, and click the Loom. All 4 Ropes will be converted into Linen.
Craft a small bush stump, medium wood, and a plank together.
Small Bush Stump+ Medium wood + Plank