iPod is an intelligent gadget but it does not comes with a radio function. Users need to buy a iPod Radio Remote in order to have radio functions on their iPod. For so many years, Apple has decided not to include the radio function and if you need one, you need to spend another S$80 on top of your iPod.
About the FM Radio
Just plug in your iPod Radio Remote and select "Radio" from the main iPod menu. Tuning takes place right there in the color display with your Click Wheel, just as you’d set a classic analog radio. Easily mark a favorite station for quick access later, and switch between favorite stations using either the iPod or the remote.