am not sure what am doing wrong
This looks to be a lab. Could you please give us a link to the lab, so we can check this out for you?
Not sure why you aren’t validating in the grader. My version of /etc/resolv.conf is the following; it validated.
search stratos.xfusioncorp.com
nameserver 127.0.0.11
nameserver 8.8.8.8
search yahoo.com
options ndots:0