I was asked to make a cake with a towel of small cakes that's what it look like although she called it cupcakes. Please tell me your thought and how can I make this for 70 people. 

Sounds like she wants a cupcake tower.  Was the picture similar to this?

If you are making standard size cupcakes it is usually recommended to make 1.5 cupcakes per person, especially if that is the only dessert being offered.  Cupcakes are easy to grab and people don't look at a cupcake the same way as a slice of cake so they tend to eat multiple cupcakes, especially if there are different flavors.  So you will need to make 105 cupcakes or roughly about 9 dozen.

I thought it was the same as what you've shown but these look like small cakes.  Here is a similar picture. How can I make these to feed 70 people

You can do individual cakes out of sheet cakes - cut a sheet cake into 2x2 squares.  Fill, coat and cover in fondant - times 70.....  Those particular cakes, the quilting looks like a separate piece wrapped around and then the ribbon hides the seam.  70 isn't too terrible, but it would take some time to complete.

I can't see your picture, but I did some more googling and I understand what you are talking about now.  Like 640Cake said, you could definitely do individual mini cakes cut from sheet cakes.  It would definitely be more time consuming then cupcakes so make sure you charge accordingly.

But I would first clarify with your client that she wants mini cakes vs cupcakes.  That would be very confusing to be shown a picture by her with mini cakes but then to have her call them cupcakes.  So just make sure to find out what she actually wants since it isn't super clear.