This is how I interpret this statement, but without having the book in front of me, I can't be sure if I'm correct or not.
If you take a point $x$ on the circle $\mathbb{R}/\mathbb{Z}$ and remove it, you end up with a non-compact space (homeomorphic to an open interval). If you wanted to compactify the space again, there are several ways you could do it. One is of course to add the point $x$ back in and get back the circle. On the other hand, if we think of $(\mathbb{R}/\mathbb{Z})\smallsetminus\{x\}$ as an open interval, we can instead add two points at the "ends" to get a closed interval. I think this is what the author wants you to do, except that instead of just doing it at one point $x$, you are supposed to do it at every point $x = n\theta$. So you can think of this as a funny way of compactifying the space $(\mathbb{R}/\mathbb{Z})\smallsetminus\{n\theta : n\in \mathbb{Z}\}$.
To see that the space $X$ you obtain in the end is a Cantor set, you should prove that $X$ is a compact metrizable space that is perfect, nonempty, and totally disconnected. It is a theorem that any such space is homeomorphic to the Cantor set.
The nice thing about this construction is that rotation by $\theta$ map on $\mathbb{R}/\mathbb{Z}$ induces a map on $X$ that (I think) is a homeomorphism with interesting dynamical properties. I don't think it would be obvious how to construct such a map if one started with the usual definition of the Cantor set....