(a*b*)* means that to we can take 'a' any number of times, then we can take 'b' any number of times, and then we can keep repeating this process any number of times. Here 'any number of times' also includes zero times.
Here is how one can generate the required string:
$(a^{*}b^{*})^{*} \rightarrow (a^{*}b^{*})^{2} \rightarrow (a^{*}b^{*})(a^{*}b^{*}) \rightarrow (a^{0}b^{1})(a^{1}b^{0}) \rightarrow (b)(a) \rightarrow ba$.
:)