Use a variable to track the active option in the list. Cursor up, decrement/loop variable, cursor down, increment/loop variable. Once a selection key is pressed you have the variable to use in your logic to decide what to do next. For the menu itself you can simply use text, sprite fonts, and/or sprites.
Heres a quick capx:
https://drive.google.com/open?id=0B56h9 ... GpENVozcXM