You can’t install that theme on a free hosted WordPress.com blog. There is no FTP access to WordPress.com free hosted blogs. The only versions of the themes we can use on free hosted WordPress.com blogs are found here in your dashboard > Appearance > Themes and showcased here > http://wordpress.com/themes/
Bottom line: There is no upgrade that you can purchase from WordPress.com that provides FTP access, the ability to install plugins, install third party themes and software into free hosted WordPress.com blogs. For a comparison see > http://support.wordpress.com/com-vs-org/
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