Hi Ravi,
Using 8MHz peripheral clock, you can get indeed only 1Mhz baud rate (OSR = 7 (+1), SBR = 1), error +8.51% which is too high.
I don’t know your SPLLDIV2 clock frequency, but in case it is 48MHz, you can set
OSR = 12(+1), SBR = 4
or OSR = 25(+1), SBR = 2
Baud rate 923077, error only +0.16%.
Also, in this case the OSR will be higher which is recommended.
Regards,
Daniel