Nautilus: Where is the "open in Terminal" option? (Ubuntu 16.10, nautilus 3.20.3)

Edit : just install nautilus-action and gnome-terminal did the trick

sudo apt install nautilus-action gnome-terminal

If you don't want to use gnome-terminal, then you can use the following steps :

I managed to reproduce it via the nautilus-action package.

sudo apt install nautilus-actions

Launch the configuration tool :

nautilus-actions-config-tool

First, change the global preferences to display actions at the root of Nautilus menu (instead of nested) : go to Edit/Preferences menu and uncheck the "Create a root 'Nautilus-Actions' menu like below :

Click on Ok. Now, we add our action : go to menu File/New Action and check "Display item in location context menu", change the "Context label" to "Open in terminal". See below :

Go to the Command tab and put "x-terminal-window" in the Path.

Don't forget to save the configuration (menu File/Save) and to restart nautilus (in a terminal : nautilus -q)

After launching a new nautilus window, you should have someting like that in the top right menu :

For Xubuntu

sudo apt install nautilus-actions

Then launch Natulius-Actions Configuration Tool. Do as told in Brahim Hamdouni's answer except for the part where you enter x-terminal-window. You should paste this to PATH:

exo-open --working-directory %f --launch TerminalEmulator

This action will open default terminal emulator you are using. Don't enter anything for parameter. Save then run Natulius to check.