Widgets Error while Activating

Yes i to came to know that the code is already Widgetized.

But my widget menu under designs.shows like this,

No Sidebars Defined
You are seeing this message because the theme you are currently using isn’t widget-aware, meaning that it has no sidebars that you are able to change. For information on making your theme widget-aware, please follow these instructions.

So anyidea what i could do shows widgets in it.

HI Whooami , what i understood from the link is ,

I have to create a new function.php file and insert the code give it.

Is that right, or anything to do in it.