Xbee and LCD Serial Enabled 16x2 LCD

1- Can you please tell me the TX and RX pins on Arduino is connected to which pin on on LCD?

LCD pins are:

Vss,
VDD,
Vo,
RS,
R/W
E,
DB0-DB7

Serial LCDs don't have those pins. That yours does means that it isn't a Serial LCD. So, none of the pins are TX/RX.

2- I want to type in characters in Aurdino software and be able to display it on LCD in real time using USB cable.

You have a keyboard attached to the Arduino? Is your LCD attached to a USB cable? Is it a USB host or a USB client?

3- I am using the below code, am I using correct code ?

Not even close.