Create Pages

1- Go to Pages – Add New
2- Create a new page titled Home
3- On the right hand side, Page Attributes box, on Template, select Blog widget Template
4- Click Publish
5- Repeat the above step to create a Blog Page (no need to select any template).

Setup Static Home Page

1- Go to Settings – Reading
2- On Front page displays select A static page (select below)
3- On Front page, select Home
4- On Posts page, select Blog
5- Click Save Changes

Setup Blog Widget

1- Go to Appearance – Widgets
2- Drag Ace Category Extract to Blog Widget
3- Setup the Ace Category Extract

To get category link, you can refer here