Both ring and background are path, ring has only stroke with no fill.

I tried using path>difference but it punched a solid hole instead of a ring, I can easily achieve the result https://19216801.onl/ https://routerlogin.uno/ https://192168ll.link/  I want by adding a smaller circle in the middle but i would like to know the correct way of doing it.

Thanks in advance

Try to set Fill and Stroke-> Fill to evenodd and see if this helps already. "Combine" should work easier on this I guess.

If the goal is a ring-shaped hole, the ring needs Stroke to Path before the difference operation.