After ensuring that the database information is correct, try creating the application databases again.
The easiest way to test that your application is able to use the Postgre SQL database is to try to run it.
Also, Use Cloud9, the Railsbridge Virtual Machine, or switch to mac OS or Ubuntu Linux if you can.
Your best source for help with problems is Stack Overflow.
See this article for complete instructions: Install Ruby on Rails – Ubuntu to install Ruby and Rails. Cloud9 provides a “hosted development environment.” That means the service provides a computer you use from your web browser. The web interface includes a browser-based file manager and text editor, plus a Unix shell with Ruby and Rails pre-installed.Install Ruby on Rails 5.0 on mac OS, Ubuntu, or Windows.Up-to-date, detailed instructions on how to install the Rails newest release.If your application requires the scalability, centralization, and control (or any other feature) that is provided by a client/server SQL database, such as Postgre SQL or My SQL, you will need to perform a few additional steps to get it up and running.This tutorial will show you how to set up a development Ruby on Rails environment that will allow your applications to use a Postgre SQL database, on an Ubuntu 14.04 server.