If this is your final year project Good luck.
Don't let us talk you out of it But its not just a simple thing.
You said
inverter controlled by Arduino, is the MOSFET a good choice for the inverter
You need to do a lot of reading up and build it then.
Come back and ask more when you no what you need draw the whole circuit.
The blocks in the link you posted are just a idea to make this happen you need to fill them in with a circuit.