Hi, thank you for contacting JustAnswer.com. My name is Russell. I will do my best to provide the right answer to your question.
I am sorry to say that, most likely, your tablet's touch-screen is damaged, or non-functional in a purely hardware sense. Touch-screen function is not 'turned Off' at any time, because it is so basically necessary. So it isn't a matter of a setting being corrected. And in fact, a factory reset and wipe of data would almost certainly not help.
But you can try that if you like. It would be best to try to get the data of yours off the tabet, that which you haven't backed up. So connect your tablet to a computer by a USB cable (if it has a USB-mini port on it) and see if you can access the data and copy it off onto a folder on the computer.
Then try a factory reset and wipe data, and see if it restores touch function... if you can. I doubt it will, I'm not at all sure it could... but it can be tried.
After which, a decision between repair to the tablet, and buying a replacement, would be the thing to do. (If the tablet is still within the warranty period, repair would be free of charge under warranty from Pandigital, of course.)