‘Open in terminal’ is a nautilus plugin that adds an option into right-click context menu allow launching terminal and automatically navigate to current location. The plugin nautilus-open-terminal is available in Ubuntu default repository.

Open up a terminal from the dash home or press Ctrl+Alt+T, execute this command to install the package:

sudo apt-get install nautilus-open-terminal

Then, restart nautilus by log out and back in. Or run this command:

nautilus -q