Have searched everywhere but no luck all option screens do not have option to change difficulty,
Really disappointed in the amount of bugs in this game.
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There are three difficulties in this game, Normal, Nightmare and Hell. A classic character must complete “Terrors End” (kill Diablo), and an expansion character must complete “Eve of Destruction” (Kill Baal) in order to progress to the next difficulty.
Once a difficulty is unlocked, you can then choose which unlocked difficulty you want to start the game at.
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Ok so until I complete the game in normal I cant access other difficulties?
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Correct. Complete the game on Normal to unlock Nightmare and Normal Terror Zones. Complete the game on Nightmare to unlock Hell and Nightmare Terror Zones. Complete the game on Hell to unlock Hell Terror Zones. (Terror Zones only applicable to expansion characters)
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D2R has very few bugs, by far most polished modern ARPG… your other issue was not a bug either, you just need someone to show you the ropes…start a stream and let us all watch and comment 
Huh, I thought this would be another post about p/x. Color me surprised.
New to Diablo 2 ressu?
I will say I love that diablo 2 has a set difficulty.
If the game is too hard, it means you need to farm up some levels, or gear, or maybe take another look at your skill tree, rather than going back into options and adjusting the difficulty slider.
This modern ARPG trend of having 30 different difficulties has the player constantly fiddling with the settings instead of finding the solution in game.
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It’s another big reason why D2 is eternally good and D3 is slop.
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Hey D3 works pretty good to see if your mouse buttons continue working if they are held down. 
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IMO, Fromsoft games hold the crown in this regard.
Are we talking about the same game? D2R is a masterpiece and one of the most polished ARPGs in existance.