The problem is that you've launched psql as the user postgres and you haven't granted the postgres user permission to read the SQL file. You'll need to give it permission. The simplest way is to grant world read rights:
chmod a+r create.sql
You can change the default permissions assigned to files by altering your umask; search for more information. Some programs rather annoyingly ignore the umask and set restrictive file permissions anyway, so you always need to know how to grant permissions. See man chmod and man chown.
BTW, you're using a very convoluted method for launching psql as the postgres user. This'll do just fine:
sudo -u postgres psql template1
Note that /create.sql specifies a file named create.sql in root of the file system (/). I doubt this is what you intended.
You probably want to specify it as a relative path (without the leading /) if it's in your home directory, like:
template1=# \i create.sql
or if it's on the desktop and you've started psql in your home directory:
template1=# \i Desktop/create.sql