Right now I am hand quilting a top that came to me through a family friend who was clearing the home of a deceased grandparent. It is hand pieced and I marvel at the perfection and the quality of the piecing. It looks similar to the one in the picture but there is a curve on both sides of the square, creating a "bow tie" background. This one is put together on plain muslin instead of the total scrappy look. It is a 3 1/2" finished block. I rather like that as I am not quilting the circle, just the background. The finished circle becomes a little less that the 4" recommended by batting manufacturers.
A hint on making a template. I'm not certain hospitals will still do this but in the past I've asked about exposed xray film and they are happy to give it away. It's heavier plastic and makes nice templates. Used to be that bacon came on plastic "trays" but I'm not finding that much any more either. Depending on the size you need, the plastic from a milk jug is usable, too. If you are wanting something that won't be trimmed off by your rotary cutter, go to the local glass company and ask them to make you a template from plexiglass.