Team, I am new to rancher, I have installed Rancher with its version 1.6, I can't see the option of tools.

Rancher 1.6 became end of life in 2020 (https://www.suse.com/lifecycle/#rancher). We would advice installing the latest 2.7 release - https://ranchermanager.docs.rancher.com/pages-for-subheaders/installation-and-upgrade

Understood, I have mentioned the Rancher server, version 1.6.34, so both Rancher and rancher server are different. I want to install Rancher on VM(Linux) sandbox and will get that connected to Kubernetes cluster on the cloud.Do I need rancher server for that?

I'm not too familiar with 1.6, but i think

Rancher Server

is a concept / component from only that deprecated version. In 2.x Rancher is installed to a kube cluster via Helm and from that other clusters can be created / connected