How can I create the Keyboard?
You need to create the display first: org.lwjgl.opengl.Display.create()
Then you can create the Keyboard by: org.lwjgl.input.Keyboard.create()
Do I need to completely use OpenGL?
I think so, if you create the display, the display window comes up and you need to do the game in there and of course it needs OpenGL functions to perform the drawing.
But note I’m not expert in this LWJGL OpenGL, only trying to help from my newbie experience 
If yes how do I get Graphics from LWJGL’s Display?
What do you mean by Graphics in there? java.awt.Graphics?
There is no java.awt.Graphics in OpenGL, you need to draw your images from textured triangles or quads.
You could see my LWJGL->Java2D implementation in here :
http://www.goldenstudios.or.id/products/utilities/addons/
If you have any troubles understanding the source just ask me.
For the keyboard I map all LWJGL key to Java2D key.
So I can use LWJGL Keyboard without changing my game source code a bit.
E.g: isKeyDown(KeyEvent.VK_F) -> isKeyDown(Keyboard.KEY_F)
For the graphics I make a fake java.awt.Graphics2D class and override all the methods to do the same like Graphics2D with OpenGL implementation.
So (once more) I do not need to change my game source code. 
Hope that helps. 