The Interpolation through GRASS plugin tools can be done through an alternative method as Jakob mentioned using the 'CTRL + ALT + M', which gives the IDW interpolation for the smaller region where the points exist and not for the entire mapset. Thanks to JAKOB.
Also, the way to do it through command line (i.e. GRASS Shell) is that when we use 'CTRL + ALT + M' -> Go to v.surf.idw interpolation -> IDW Interpolation Dialog Box.
In the 'IDW Interpolation Dialog Box' give all the inputs and parameters and when you Run the tool, try to
"quickly copy the commands under the LOG tab in the same IDW dialog box"
When you read this log file you will notice that it is basically the same thing which will happen if you use the GRASS shell and run the same 3-4 commands from a '.sh' file using "sh TestCommand.sh" command in GRASS command line.
So just read the LOG file and pick the exact commands to be copied to a '.sh' file -> Copy the exact commands to your '.sh' file and just run it through GRASS shell using "sh abcCommand.sh" command (assuming that 'abcCommand.sh' is your '.sh' file that you created in this case)