National History Day help?

If you use somebody else's words exactly, without changing them, then you must put quotation marks around them and also cite them.

If you paraphrase somebody else's words, you do not use quotation marks but you still need to cite your source.

It doesn't matter whether it's from the internet, a book, a TV show, or a personal interview.

And the purpose of citation is not "to avoid getting in trouble." The purpose is to let readers know where you got your information; where they can go to find out more about the subject; and to give credit where credit is due. Citation is not something your teacher dreamed up to torture you with. It is used for good reasons by real-world writers.

As for your thesis, no, it's not a good thesis. It's just a statement of facts (except perhaps for the "took away rights" part). A good thesis would explain why the treaty contained the provisions it contained, or what effect those provisions had, or something like that -- a statement of cause and effect. That's not the only kind of good thesis, but it's definitely better than just a statement of fact like the one you have now.

Gigapie has provided an excellent clear explanation of citing sources.

As for your thesis,thesis statements are best kept short and to the point.

'The Effects of the Terms of the Treaty of Versailles on Germany and the German People'

will do hust fine.