I'm using RHEL7 on KVM. I don't get the option for wifi. In network setting I get only two options: wired and Network proxy.How can I get the option of wifi?

First, this isn't surprising; RHEL is designed for SERVERS, which typically don't have wifi/bluetooth/sound or other such 'consumer' devices, and frequently don't even have KEYBOARDS or monitors attached. Secondly, you don't tell us ANYTHING about the hardware you're working with, desktop environment or anything you've done/tried....we can't guess.

Most importantly...since you're using RHEL7, which is a COMMERCIAL, PAY-FOR PRODUCT, have you contacted Red Hat support, since yo're paying for RHEL (right??) And is there a reason you NEED RHEL? If there is a really good reason for you to use a server-class distro, and you don't want to pay, then stop where you are and load CentOS 7 insteadl.

I'm using RHEL7(version 7.3) with desktop environment and, hence, supports wifi/bluetooth/sound. Also, I don't have its subscription, so can't contact Red Hat support, if I am not wrong(I am new to Red Hat). I've to work on iSCSI topic of Red Hat, so can't shift to other distro.

WHICH desktop environment??? And just because you're using the workstation distro doesn't mean it supports all of that.
https://access.redhat.com/articles/911363

....and you STILL haven't told us what hardware you're using, how you're trying to activate the connection, or anything that you've done/tried. Again, we can't guess.
First, if you're using RHEL you need to PAY FOR IT PERIOD. Secondly, if this is for work, then there should be NO problems getting your company to pay for it. And you are wrong....iSCSI is well supported on pretty much EVERY version of Linux, from consumer-distros like Mint and Fedora, all the way to CentOS. If all you have to do is work on iSCSI, then stop where you are and load the latest Fedora. You'll stay in the RHEL 'ecosystem', it's free, and will support wifi easily.

Fyi: RHEL7 Developer has been offered for free since earlier this year.

http://developers.redhat.com/blog/20...now-available/

It's free to use. Has RHN subsription updates. But has no tech support aside from forums/twitter. So it is possible that someone is using RHEL7 legit without paying for it now. Like CentOS. I would suggest going to RedHat to ask questions about it though, since it's sort of their deal and they are helping people get started with it apparently.

I don't use KVM so I can't say but normally a vm uses the hosts resources via a virtual router so the wired interface should be routed to the correct host connection based on metric and subnet and such.

See if this is any help maybe. http://superuser.com/questions/69492...irtual-machine not exactly your question however.

Look here:
https://access.redhat.com/documentat...onnection.html

https://access.redhat.com/documentat...ool_nmcli.html

Red Hat Support
1-888-733-4281
https://access.redhat.com/support/co...ustomerService

kvm's and others like VB
"see" the wifi card and a CABLE eth device

for "wi-fi" use a usb device

this is well documented

and you might want to use CentOS7
cent adds more DESKTOP tools that are NOT in rhel normally

I ran CentOS for 3 years and had complete success.

https://www.centos.org/download/
https://wiki.centos.org/Documentation

https://wiki.centos.org/HowTos/Laptops/Wireless