Yeah, that's part of your problem right there.  WBLOCK and INSERT are two completely different operations.  WBLOCK takes a set of objects and writes them out to the disk as a completely new DWG file.  INSERT takes a drawing or a block and places it in a drawing. 

By any chance is it the "template" file (either as a dwg or a block) the part you're trying to put into the Layout?  Is it a title block by any chance?

A word of explanation is in order at this point too.  Your subdivision, or whatever it is, is entirely in Model space, and is drawn to real scale... probably a thousand feet (or meters) or more on a side.  But it's real scale, full units  Stuff in model space is always drawn full scale whether it's in millimeters or parsecs.  But Layout space, otherwise known as Paper space, is just used for prints, plots, or display.  It is not in real units.  It's scaled to fit the medium, and is our Viewport, or window, thru which we look at our drawing.  Think of it as a window you look thru to see your model.  But you create the window.  It's called a Viewport, and you draw it in paper space.  Without a Viewport you can't see the model.

Now explain again what you're trying to do.

Dave.

Please guys anybody can help me that how to create a lisp file?

Yes I meant the title block. I am sorry. 

Yeah, as John says, first you insert the title block (what your prof calls a template - I'm convinced he's trying to confuse you) on the Layout tab.  Insert it on Layer 0 (in other words, make Layer 0 current before you insert), and make sure you insert at 0,0.   More than likely it's been created so that 0,0 is the insertion point.

Once you have the block in the Layout you can "cut a hole in it".  This is the viewport.  A bit of magic will happen when you first do this as your model will suddenly appear!  It will be sized as if you just zoomed extents.  It will fill the viewport.  You can work on the model from here by double clicking anywhere inside the viewport.  When you double click back outside you'll return to paper space.  Double clicking inside the viewport is called, "activating" the view.  To resize the model in the viewport click on the edge of the viewport and change the scale setting on the Status bar.  You will only see the scale setting by clicking the viewport edge.  Now you'll see what happens to your text objects to fixed height text when you change display scales.

There's much more to learn here.  But you're getting started.  :)

Dave.

I've never forgot my prof's explanation of paper space. He said, "Take a piece of paper with your title block on it, cut an opening in it and that is a viewport." Of course you can then scale the viewport to see any scaled object you drew in model space. Multiple viewports on one page can have different scales as needed as well.