Hello and welcome to Apple Support Communities, thanmai186!
I see you're trying to continue with your MacBook Air's update but have been unable to continue due to your disk still being encrypted. I'd be happy to provide information which may help you out.
Check out the following article: Use FileVault to encrypt the startup disk on your Mac
Encryption occurs in the background as you use your Mac, and only while your Mac is awake and plugged in to AC power. You can check progress in the FileVault section of Security & Privacy preferences. Any new files that you create are automatically encrypted as they are saved to your startup disk.
When FileVault setup is complete and you restart your Mac, you will use your account password to unlock your disk and allow your Mac to finish starting up. FileVault requires that you log in every time your Mac starts up, and no account is permitted to log in automatically.
You will need to wait for encryption to complete before being able to move forward.
Thank you for using Apple Support Communities.
Have a great weekend.