Hello Manisekaran,
Have you been able to run any other Rails or Ruby apps with this setup? It sounds as if your system is not configured yet to run this type of code yet.
I do not personally have experience with Windows but perhaps this guide can help, I used this for Mac OS and often follow some parts of it to re-configure my machine after a fresh install http://ruby.railstutorial.org/ruby-on-rails-tutorial-book?version=3.0#sec:rubygems