Hello Gopika,
I notice you are attempting to use the S32K3 RTD with S32DS v3.5, however, the most recent release of this RTD package only supports ""S32 Design Studio IDE v3.4 Update 3", as noted in the release notes. Since the S32 Configuration Tools and RTD must be in sync to work properly, I believe this is most likely the reason why you are experiencing this issue.
In the future, we recommend that you utilize the 'Help -> S32DS Extensions and Updates' menu to install RTD packages (and other packages from NXP) into S32 Design Studio. This tool will guide you on what packages are suitable for the version you have. It would have prevented this situation. If you need to use the S32K3 RTD, you will need to use the S32 Design Studio for S32 Platform v3.4 Update 3 for now. Once the S32K3 RTD is updated to support S32DS 3.5 and released, then you could move to the new version.
Best Regards,
Mike