It evolves into jigglypuff with happiness
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Jigglypuff
In Pokemon Crystal, Igglybuff evolves into Jigglypuff when it reaches level 2. Igglybuff is a baby Pokemon that evolves relatively early compared to other Pokemon. Evolution levels are consistent across different generations of Pokemon games, so this information applies to other games in the series as well.
Igglybuff do not evolve by level. They evolve by happiness, a rate of how much the Pokemon like their Trainers. Igglybuff can get happiness by leveling up, using an item on it, and challenging a Gym Leader. But be careful, if the Pokemon faints, or if you deposit it in the PC, the happiness will drop. I hope this will help you evolve Igglybuff. Trust me, when you evolve it, you are going to get a very cute surprise. Yea you get a jigglypuff. and you can also make it happy by walking it in the park! i think the igglybuff is cuter then the jigglypuff!
Wigglytuff doesn't evolve. This is the evolution chain: Igglybuff---Jigglypuff---Wigglytuff
You have to breed a (female) Jigglypuff or Wigglytuff.