I wish to create a 16 by 2 LCD Simulator and have knowledge of native C++.
So should i go for native C++(unmanaged) or try C++/CLI to create the application?
I don't really understand the question. If you are just trying to write an application in standard C++ then in Visual Studio I always choose Win32 Console application and that seems to work. I don't think you want C++/CLI unless you know what it is - Maybe google it?
Well, that depends if there are any features of C++/CLI that would be useful to you. I suggest you google for C++/CLI to find out what features it offers you, and to find out the disadvantages (such as major platform and compiler dependence). Once you know a bit about it then you can make the decision as to whether you want it or not. No one can really answer that question apart from you.