I'm far from a Fire Emblem expert, but I did finish the game (played with perma-death off to get a feel for things, will be playing again).
There is no option to defend. Your characters will automatically defend/counter-attack the opposition based on their abilities/ratings/class.
When you say jump out of the way, you mean like avoiding an attack, or leaving the battle all together? Jumping out of the way of an attack is the character's defense and sometimes they will respond with a counter after the CPU misses.
Pairing two characters together is an effective strategy as it can increase your attack/defense.
Glad to hear you liked Majora's Mask. I just picked that up, but need to play OoT first.

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