The fabric, when it's sewn to the paper, lays on the back side of the paper. The front of the paper is the printed side of the paper, where you sew on the printed lines, and where you could color. After you color your paper, you could hold it up to the window, with the colored side touching the glass. What you see, with the daylight from the window coming through the paper, is where your colors of fabric will be. You could compare that color layout to what is shown for the block in the book.
Fun is the key! :-)