I need help in activating I-pod. Currently it is on the activation screen where it says that "Enter the Apple ID and password that were used to setup this I-pod" The problem is, I don't have access to that ID now. Its not working at all.

Why do you not have access to that ID now? Is it not your ID? Is this something that you have changed? Do you not remember the password? You need to explain a little more what the issue is. The ID used to activate the device is necessary to activate it again, or you will remain Activation Locked.

It requires the Apple ID and password of the previous owner. If you don't have it and cannot get it, then the device is useless to you. Return it for a refund if you can.

Find My iPhone Activation Lock

In the future check first before buying second hand: How to check for Activation Lock before buying a used iPhone.