Designing State Diagram for a 2 input sequence detector
You need five states:


Nothing detected (initial state)
Detected 1
Detected 10
Detected 103
Detected 1032


Some hints: Each state has four possible state transitions corresponding to inputs: 00 (0), 01 (2), 10 (3) and 11 (4). Most of these transitions will lead to state one. 01 input will always lead to state two.