You must generate 
Parsed code for your 
adsense code because you 
cannot put adsense code directly in the xml.So parse it using  Adsense Parser tools.This tool help your visitors to parse their adsense code.I found this tips from 
here .

Parsed code will look like this :

1.Login to your dashboard--> layout- ->Page Elements
2.Click on 'Add a Gadget'.
3.Select 'HTML/Javascript' and add the code given below and click save.
| 
<iframe src ="http://tools.bloggerplugins.org/parser.php"width="100%" style="border: none" height="300"</iframe>
 | 
It will look like this.
Now you are done.
 
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