Hi Dilzz,
I think the error description that you shared with your question itself gives you a solution,
You are trying to
run .Net framework 3.5 application in Framework 4
in the more information section may help you to resolve the issue I believe.
In deployed server try to
change the Default app pool[
^] to mentioned Framework. This may the problem.
Hope this helps you a bit.
By the way, nice way to share snapshot here ;-)
Regards,
RK