Just make a new post called Privacy Policy and add it to its own category OR make a static HTML page! be creative!
Do you think Privacy policy is mandatory in blogspot blog? As it is owned by Google, I think there is no need for separate privacy policy.
No exception. Every blog must add a Privacy Policy page. Why can't you link it? Just copy its permanent link then add something like this to your template footer <a href="your-link-here">Privacy Policies</a> -Michael
By now google's request is privacy policy in each site for adsense - so you have to have it! For the future - if you are working with wordpress (as I see by your blog) - you can create a separate pages by making "save draft" before "publish" option.Then engine will organige it as separate pages this site menu ready! So you may build a real site (not just an endless blog). By the - very nice blog