can we make models in unity?

You can't make models in Unity. Unity is a game engine that is used to make games with assets that you import into your projects. However, Unity includes some models of simple objects such as planes, cylinders, spheres, cubes in its asset folder which you can use in any project. But anything more complex than that, you need to use a 3D Modeling program.
There are some plugins that you can get in Unity for creating roads and spline objects directly in Unity though, which still do not let you customize too much things.
I always make models in 3DS MAX and then import into Unity.
Blender is a great free 3d modeling software which is pretty easy to use too.

We can't make models in unity.
I always use blender for modelling and texturing.

How do you import models into unity? I tried doing that but it doesn't have textures applied

Unity?