Hi Dwarak,
The purpose of linking the SAP Business License file in RSP is only to allow RSP reading out the installation and system number of your SAP Business One installation. However you may skip this step while executing the setup wizard and configure it later once you execute the Initialisation wizard.
If you have to enter proxy credentials depends on the proxy configuration itself, e.g. can you browse the Internet only if you applied such credentials into the browser?
Also the proxy settings you may configure it later while executing the Initialisation wizard.
RSP requires an Internet Connection in order to establish connections to SAP's backend and optionally your SAP partner backend via Internet in order to receive lastest RSP Tasks and optionally transfer task results. (Don't worry, no task result will be transferred as long you did not give explicit permission to do so after you reviewed the content)
And just for the Internet connection the proxy settings are required in case a proxy got set up within the environment where remote support platform for SAP Business One got installed.
PS: Please ensure to get latest version and PL of RSP installed (currently RSP 3.1 PL 4). It is in general combatible to all Business One versions.
Best regards
Mario Schoenberg
SAP Business One Support