Open a new canvas and with your Preset tool set at circle, draw a circle the size and width you want your frame to be. Convert to raster. Add any textures or effects you want. Then Selections – Modify – Contract, and contract to the size you want your ribbon to be. Add a new raster layer and fill with the colour you want your ribbon to be. Select none.
With foreground colour set to white, background colour closed, use your Preset tool set at circle to draw out a small eyelet (size and width depending on your frame), convert to raster, then apply a metal or other effect. I used a Super Blade Pro preset. Duplicate your eyelet as many times as necessary, and, keeping them on separate layes, move them into the position you want them to be.
On your ribbon layer, erase the greater portion of the ribbon which will go under the frame, then move your ribbon layer so that it is over the eyelets.
Go to the first ribbon section. Move the eyelets into their exact position, then click inside the first eyelet with your Magic wand, then Selections – Modify – Expand by 1 pixel, go to the frame layer and hit delete. Select none. Repeat for the other eyelet. Go to your ribbon layer, lower its opacity a bit so you can see the eyelet underneath, and using the Mesh warp tool, draw in the two ends of the ribbon towards the eyelets. When you’re happy with the result, you can put the opacity back again.
Go to the layer of your first eyelet, and with your Selection tool set at rectangle, select the portion of the eyelet over the ribbon. Edit – Copy, then add a new raster layer, drag it above your ribbon layer, then Edit – Paste into selection. Select none. Repeat for the other eyelet, then go back to your ribbon layer and carefully erase the ribbon bits extending beyond the eyelet.
Repeat this for the other ribbon sections. When you’re finished, close off your ribbon layer, your frame layer, and your eyelet section layer above the ribbon layer, and Merge visible. Staying on your eyelet layer, hold the Shift key down, and with your Magic wand click inside each eyelet, then Effects – 3D effects – Cutout and apply a cutout, using a dark colour complementing your ribbon colour. Select none. Now go to your ribbon layer and apply any effects you wish to make it more realistic. I used the Eye Candy Textuyre/Texture noise filter. Add a slight drop shadow to the ribbon layer. You can also use the Darken tool on the frame layer to slightly darken the areas beside the ribbon.
You’re basically done! You can now either merge visible or add some embellishments, like a bow, a charm, a tag, etc.