I just opened a blogspot blog, and am new to working with the templates and don't know how to put a privacy policy on it.
sorry, I can't help you about blogspot since I preferred using Wordpress (hosted in own hosting).... anyways, if you're looking for what should you put in privacy policy page, use this one instead: http://www.serprank.com/privacy-policy-generator/ its a generator for privacy policy, just copy & paste the text they'll going to provide you.
do we have to put a privacy policy on blogger? i read somewhere that its already in the blog, added by blogger.
Well macrolife from what I've heard there needs to be a link to a privacy policy on every page with adsense on it....and even though it is blogger, I haven't seen any built in policy.
The easiest way is to make a post containing the privacy policy. Just give it the label "privacy policy" then add link to that post in your sidebar or footer. Here is a good privacy policy template: http://www.jensense.com/2009/04/03/...ample-with-interest-based-targeting-included/