This is how it looks for me. I'm not sure how the setup instructions could be missing from your download o_O. You could try downloading again. If they're still missing, but you still have the loot tables folder, just copy the loot_tables folder into the data folder of your minecraft save.
I've tried moving the loot_tables folder into the data folder but the mobs still won't drop what the loot tables say they should drop. I don't know what I should do now :/
I would like to ask: How does this mod work?? You can create your own items?
It isn't really a mod in itself. Just a resource pack that makes use of features that optifine has. Optifine can detect special data in items such as their enchantment or display name, and change their textures using a resource pack. The items still behave the same way and have the same stats, just their texture is replaced with a different one.