I have an area where I'm trying to mark some polygons in it and under temporary places folder they were adding as shown below. Now how do I select some of the polygons and move them to different folder.
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The sidebar in Google Earth lets you use the mouse to drag/drop items like polygons. You should be able to click & hold on one of your Untitled Polygons, move the mouse pointer up to the desired location in your My Places, and then release the mouse button to "drop" the polygon into that new location.
In future, first select the folder where you want the newly created polygon to be located, then create the new polygon (e.g., via toolbar button). You will see that the new polygon appears in the desired folder rather than Temporary Places.
I accidentally put polygons and other objects in the wrong location all the time! All you have to do to correct that problem is just drag and drop.