Hello Vinit,
This question is much more about UHD so I'm adding the usrp-users mailing list [1].
There is no USRP daughterboard which goes to 250 GHz so I assume you mean 250 MHz which would point towards the BasicRx daughterboard. This daughterboard has no mixer and so the N200 will use aliasing to receive non-baseband signals. The N200's ADC runs at 100 MSPS, but Gigabit Ethernet isn't able to transport that much data so it is always decimated by some factor. This means that a target frequency of 97.9 MHz (A good choice for a first test) is in a higher Nyquist band. What you're seeing is correct behaviour.
UHD 3.5.5 is very old and I'd recommend removing the current version and install a newer release. I would guess that you are on Ubuntu 14.04 and installed it using apt. If you are very unfamiliar with Linux and don't have anyone locally who you could get some assistance from it's worth considering using the GNU Radio Live Environment [2] which can be written to a USB drive and booted from. This comes with up to date versions of GNU Radio and UHD, as well as a variety of additional SDR related packages.
You can also look at PyBOMBS[3] or the build-gnuradio [4] script, either of which will install the latest UHD and GNU Radio.