I have just bought iphone 4S . I would like to use it as a wi fi dongle for my Mac Book air .Does anyone know how to do that please ?

Please see above

You first have to purchase "tethering" from your phone service provider. Then it is just a matter of enabling the tethering within the iPhone preferences (create a personal hotspot), and then pairing your phone via Bluetooth. Here is a support document from AT&T on the subject.
Another document with setup particulars.

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