Blog Page Template

[craftpassion]

I am new to blogging, so please bear with me if I asked simple question.
I have created a blog page by following the Lifestyle theme tutorial, i.e. create a blog page and edit the page_blog.php. However, when I create the page for blog and wish to change the template to "blog", I couldn't find it in the dropdown list, it has "Default template", "Archives" and "Links", but no "BLOG". :?
Now, my blog page is blank. you can see it here
http://www.craftpassion.com/?page_id=182

Can you please tell me what have I missed out and why I dont have the blog template in my blogpage?
Do I need to write anything on that page to make the blog post appear since it is blank?