Hiranthini, this place is not a general educational portal :)
You have to learn general techniques by yourself or with a teacher.
Start with a basic search in YouTube:
https://www.youtube.com/results?search_query=illustrator+clipping+mask

Can someone please do a video demo for me please? Thanks

Is it possible to do a video demo for me please?

Here is the documents with two artboards.
Each one has an example of your image with a round hole in the middle, using methods I described below.

These are the basic operations, and I advise you to learn clipping and transparency routines, they help a lot in creative process:
https://helpx.adobe.com/illustrator/using/clipping-masks.html
https://helpx.adobe.com/illustrator/using/transparency-blending-modes.html

I attached a glitter background wallpaper I want for the Outside of the circle, the edge.

None of them are working.

For the second part, I did that, but it made my image black and white. Is it possible for you to do me a demo for me please?

Yes I want a Draw Outside mode. Is it possible to do a demo for me please? Im really worried if I mess up. Like maybe do a video of you doing it.

So basically what you want to have is Draw Outside mode, is that correct?

So fat there are two ways to do that.

1. First Subtract (using Pathfinder panel) your circle from a rectangle, larger than your image, and then clip your background using this rectangle with a round hole in it — select both the image and the shape and use Object > Clipping Mask > Make.

2. Fill your circle with black (since you are working in CMYK, use rich black, or even registration swath to fill it), then select both image and the circle, open Transparency panel and press Make Mask button. Make sure you have both Clip and Invert Mask options unchecked in this panel.

Sure, these are workarounds, but quite effective ones.

Please comment back if it works for you.

Where I hovered, it says Draw Inside, and the second screenshot has the picture in the circle. I want the picture on the Outside of the circle (Edge)

This one requires more details.
What does the 'background for edges' mean?
Can you show an example, please?

There is a feature called Draw Inside. When you bring a background for a particular shape, it fills the shape.

I want to see a new feature that can let me use different glitter backgrounds for the Edges of the shape (NOT DRAWING INSIDE)!

Invert clipping mask to show what's not inside the clipping mask and hide what's inside (and then being able to invert it back so it was like before). Thus being able to delete or edit the outside easily.