How do I create a report using SQLite3 DB? I'd appreciate just step by step or pseudo-code.
That's quite a big open-ended question. SQLite is really the built-in REALSQLDatabase class and it inherits from the generic Database class so it works just like every other database class in REALbasic.
There are numerous ways to do a report in RB. The first way is to use the built-in reporting tool in REAL Studio itself. Look for examples in the Example folder that comes with RB.
You could use RSReport from Roth Soft available at http://www.rothsoft.ch/realbasic/rsreport/
You could use On-Target Reports at http://www.ontargetreports.com/
That doesn't answer your question directly because those are the tools involved. Each tool has its strengths and weaknesses so you should check each of them out.
There are tutorials available for all of these tools in the Association of REALbasic Professionals (ARBP) source code repository at http://arbpmembers.org (free registration required to access the repository).