I have installed unreal engine 4 on my laptop but it is giving me error to update my graphics card driver but it's up-to-date

Development Getting Started & Setup
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My laptop spec
I3
3gb ram
540m gtx Nvidia
Intel graphic card

2

giving me error to update

Error to update? What driver version are you running and what driver are you installing?

Afaik, mobile GPUs are not officially supported but can made to work, sure - I’ve seen folks work with worse; besides that, your CPU is only 2 core and 8GB RAM is the minimum.

You laptop does not meet the minimum requirements. Technically, you should be able to launch the editor, just do not expect to be able do much. It will be painfully slow especially with that 5400rpm drive, and crash-prone with 3GB RAM and 1GB vRam on that card.