Hi Minakshi,
As per your screenshot, your server URL string is wrong. there "microsoft" is missing.
the string will be :
jdbc:microsoft:sqlserver://<host>:<port>;DatabaseName=<db>;
You can try with both host name or IP, sometime it may cause issue.
As per your JDBC Driver string, you have to use JDBC driver. If it is installed and handled in SQL server then you have no need to put it in MII "JDBC Driver" else you have to upload it.
Another point is, if you still get the status as error, just check user in the MSSQL server, sometime, the user got locked in the data server end due to 3 wrong hit.
Hope it will help you,
Suman