Paint the wood using white craft paint. Roll on one side, let dry, and flip over. Paint other side and let dry.
Apply a coat of Mod Podge to the wood; don't do the edges. Let dry 15-20 minutes and repeat. Make sure to cover everything.
While the Mod Podge is drying, separate the napkin from the bottom layers. You can use tape to help. You just want the top layer with the design.
Place the napkin down onto the wood and align. Place a piece of parchment paper on top of the napkin, and run the craft iron across the top several times. While you are doing this, the Mod Podge is melting below the napkin, and the napkin is adhering. Keep going until the napkin is fully adhered, including the edges.
Let the wood cool after ironing. Use an emery board to gently sand away the excess napkin. Sanding at an angle works very well. Continue until all the extra napkin is removed. It's going to take a minute to get into those crevices!
Cut a length of baker's twine to wrap on each handle. Glue the twine to the back with hot glue and let set. Wrap the twine around and glue again to secure. Let set and trim. Repeat with all handles.
Spray paint the wood word with gold spray paint. Let dry.
Apply glitter paint to the top of the gold painted word with a spouncer. Let dry and then touch up any areas where paint is missing.
Hot glue the word to the boat wheel. Let set before hanging with red and white baker's twine.