How to enable Force Touch Pressure on iOS Simulator 9.1
Simulator does not support interaction with iOS Devices using 3D Touch prior to Xcode 7.3. The menu item that you are referencing relates only to Apple Watch devices.
select simulator(watch) --> Hardware --> Force Touch Pressure --> Deep Press, and then click and hold on simulator, menu will be popup. you don't need to real device to test context menu.
On the Apple Developer website, it says:
NOTE
With Xcode 7.1 you must develop on a device that supports 3D Touch. Simulator in Xcode 7.1 does not support 3D Touch.
Apparently, the new Simulator 9.1 does not support 3D Touch. You can actually implement such a behavior but (unfortunately) you have to test it on real a device that supports 3D Touch.
I guess we all have to wait for the next issue of Xcode.
See here for similar discussion and way to test force touch only for quick actions (on the app icon).