Tom,
Perhaps not the correct answer:
(eval (read (strcat "(" "setq " "My" "Age" " " "37" ")")))
The above creates a var named MyAge and puts the value 37 in it.
In your case:
(eval (read (strcat "(" "setq " "test" "1" " " "12" ")")))
or (if strings are needed:
(eval (read (strcat "(" "setq " "test" "1" " " "\"12\"" ")")))
Alex