Since it is a Google Web font you need not to write @font-face
in you style sheet just use following link tag in your source code:
<link href="http://fonts.googleapis.com/css?family=Jolly+Lodger" rel="stylesheet" type="text/css">
and
<style type = "text/css">
p { font-family: 'Jolly Lodger', cursive; }
</style>
will work.
By the way, in your code you are defining @font-face
family as font-family: Jolly;
and using it as p { font-family: 'Jolly Lodger', cursive; }
that is wrong, because it’s mismatching font-family name.