I am using the "Interpolate Line" tool in 3D Analyst to create a profile using "Profile Graph". However, I get two error windows:

 1. 


> Unable to create temporary shapefile

 2. 


> To create a profile graph, the selected graphic or feature has to be a
> 3D line. To create a 3D line, use the Interpolate Line tool or Line of
> Sight tool.

My DEM has been selected.

Workflow:
[![Location][1]][1]


[![Select Interpolate Line][2]][2]


[![Select line][3]][3]


[![Result following Profile Graph 1][4]][4]


[![Result following Profile Graph 1][5]][5]


  [1]: https://i.sstatic.net/D4iIj.jpg
  [2]: https://i.sstatic.net/XhTmP.jpg
  [3]: https://i.sstatic.net/sA0FS.jpg
  [4]: https://i.sstatic.net/KWxvz.jpg
  [5]: https://i.sstatic.net/ZrXQX.jpg