Generally, we like to put the names of the states within circles because we're going to start drawing lines between the circles soon, and we don't want those lines to cross over the words and make them unreadable. Now, draw the states again, but include the transitions between the states this time. Pico's drawing is correct. Water turns into ice when cooled. Water turns into steam when heated.
Steam turns into water when cooled.
Ice that is cooled remains ice. I hope that you have learned how to draw state diagrams. Now, lets pretend that we had a piece of ice. Put your pen on the ice state. If not, go back and make sure that you have everything allright.