Hi Sukhwinder,
I have one more doubt here is, Once I drop the tablespace SAPSR3700 with data and contents, will the space be free on OS file systems ?
You will have free space on the database level after dropping tablespace.
In case you want free space on OS level, you need to resize some of the datafiles or tempfiles using command
ALTER DATABASE DATAFILE '<path of datafile>' RESIZE <new size in GB>;
Hope this helps.
Regards,
Deepak Kori