To display your blog from here at wordpress.com on that page on your website, you will have to do an iframe, and you will have to ask about that over at http://wordpress.ORG/support/ .
The thing is, you already have a wordpress installation there, why not just do your blogging directly on that site? What you would do is set up a category with whatever you wanted the name of the blog to be (it looks like News) and then you would assign your blog posts to the “news” category and then include a menu item (News) that is linked to that category page.
What you are wanting to do right now is messy to say the least.
At any rate, you need to inquire at wordpress.ORG. That is where the self-hosted wordpress software is supported.