Is it true that the solar system is located in the milkyway arm know as the red arm?
Yes, our solar system is located in the part of th milky way known as the red arm.
I would like to know would be why do we have a solar system and i would also like to know would be how did are solar system make?
It isn't. The Solar System is the name of our solar system. The Milky Way is the name of our galaxy. Just in case you don't know, the difference between a solar system and a galaxy is that a solar system is a star and a group of planets and other objects. A Galaxy is a grouping of stars and solar systems.