The collective behavior of correlated electrons in the VO\(_2-\)interface layer of LaVO\(_3\)/SrTiO\(_3\) heterostructure is studied within a quarter-filled \(t_{2g}\)-orbital Hubbard model on a square lattice. We argue that the ground state is ferromagnetic driven by the double exchange mechanism, and is orbitally and charge ordered due to a confined geometry and electron correlations. The orbital and charge density waves open gaps on the entire Fermi surfaces of all orbitals. The theory explains the observed insulating behavior of the \(p\)-type interface between LaVO\(_3\) and SrTiO\(_3\).