While it is WiFi compatible, some iBooks did not ship from the factory with WiFi cards installed. These cards are limited to b & g protocols.
To see if the WiFi card is installed, you can click on the Apple menu in the upper left hand corner of the menu bar and press & hold the Option key which will toggle the menu entry "About this Mac" to something like "System Profiler". In the Apple System Profiler (also located in the Applications or Utilities folder), look in the left pane for the WiFi card and click on it to see if it shows the hardware details in the right pane.
IIRC, the WiFi card is located just beneath the keyboard which can be easily tilted up after using the two release at the top of the keyboard (these may need to be unlocked with a screwdriver). Be careful not to pull or tear the keyboard ribbon cable. You should either see the WiFi card or the empty bay with the antenna cable on the left side.
To configure the WiFi, you can click on the WiFi icon on the menu bar or access Network settings in the System Preferences (located on Apple Menu or in the Applications or Utilities folder).