How to create a interactive chart in the excel sheet and create pivots?
I'm not clear what you're asking for. However, you can do this. You run your workflow, and provide a range to export your data in excel. Than you can create a pivot table and chart using that range. Every time you refresh your data, you should refresh your pivot and graph. Not sure whether this answers your question.
Can you please also tell me what tools can be used in creating charts?
Interactive Chart tool can we use?
It's very simple. First be sure your data is ready to be connected to the Interactive Chart. When you connect it once, you should run your workflow, so Interactive Chart Tool will know that your data is ready for charting. I advice you go to reporting, Interactive Chart tool, click it and Open Example.... There are many examples on it.