Is the personal hotspot free or do you have to pay for it ?
Can some please help me and can i put my music that i bought on itunes as my ringtone if so how ??
Personal hotspot is not free with any plan I know of in the USA. Every carrier will require you to add that feature to your service and will charge additionally for it.
Bottomline is, it is a carrier feature, so you need to ask your service provider about it for your specific provider and data plan.
You can convert your own music to ringtones - numerous guides exist online and can be found with a simple search (for one thing, a ringtone cannot be longer than 30 seconds, so you need to crop your files down).