This will give rise to induced emf in imaginary coil [...]
Yes, induced EMF due to magnet is there, defined for any closed path $\gamma$ as
$$
\oint_\gamma \mathbf E\cdot d\mathbf s,
$$
whether that path goes through a conductor, or a vacuum.
[...] and hence current (I) in the imaginary region.
No, there won't be a current $I$, because the path is entirely in a vacuum, which does not conduct current.
There will be a displacement current, but:
"displacement current" is just a weird name (used for historical reasons) for the surface integral
$$
\int_S d\mathbf S \cdot \frac{\partial (\epsilon_0 \mathbf E + \mathbf P)}{\partial t}
$$
for some surface $S$;
this is not a current in the "circuit" sense of the word (motion of electric charge along a closed path);
from definition, we can see that in your imaginary coil example, the displacement current does not go along the imaginary coil curve, but it goes through the surface we consider. We can consider a surface which ends on the imaginary circuit closed path, but the displacement current still goes through the surface, not along the closed path.
Maxwell called it a displacement current, because he thought primarily of a dielectric medium where in presence of electric field, electric particles can be displaced from their normal position, and even in vacuum he imagined movable particles (the explanation for why he chose the name "displacement current" is difficult and tedious). In vacuum, there is no actual displacement of electric particles going on.
The Question is can i call this current I as displacement current or rather is this current displacement current?
Again, there is no current going along the imaginary closed path. There is a displacement current going through the surface defined by the closed path. It depends on the surface; different surface may give different displacement current.
Background
I developed this doubt because of a problem where ?>displacement current was to be found r distance(in >perpendicular direction) away from a infinite long >solenoid through which a time varying current was >passing producing a time varing B inside the solenoid (B∝t2)
Perhaps ask about this in a new question, so it's clear what the system and the problem is.