Hello,
You get a message window which says that the file SW_RNG.c can't be found, it is because some functionalities are only delivered in a library (i.e. you can't get its source code), IAR asks for this file to debug step by step what happens inside the library but, since this source file is not available you are not able to debug this section of code. Don't worry about it, it is normal, you should be able to run the application in your board.
About TeraTerm, please verify that you are selecting the correct COM port and that you have configured the baudrate to 115200 bauds/s (Setup > Serial Port... > Baud rate: 115200).
Best regards,
Earl.