Why is the PVC group always in inactive state after I configure the PVC group on an FR interface

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You must configure permanent virtual circuits (PVCs) for the PVC group. Each IP packet priority must be assigned to a PVC.

For details, see Configuring IPoFR Through a Single Link in the Configuration Guide - WAN.

Other related questions:
Do I have to configure PVC groups for both ends of an FR link at the same time
No. A permanent virtual circuit (PVC) group is used to classify and send packets based on different priorities. You can configure a PVC group on one end, or simultaneously configure PVC groups on both ends.

What is the difference between the PVC group and MFR
The pvc-group command is used to bind PVCs and classify data service flows. MFR is used to bind physical interfaces and increase link bandwidth.

Can I configure PVC groups on MFR interfaces
No. Multilink frame relay (MFR) interfaces do not support permanent virtual circuit (PVC) groups.

Why is the interface still in Down state after I create an MFR interface and configure the PVC and IP address on the interface
The following conditions must be met for a multilink frame relay (MFR) interface to be in the Up state: 1. The MFR interface must work in data circuit-terminating equipment (DCE) mode. You can run the fr interface-type dce command to change the MFR interface type to DCE. 2. The MFR interface must be bound to a physical interface. Run the link-protocol fr mfr interface-number command to bind an interface to the MFR interface.

Must the pvc-group be configured on the DTE and DCE interfaces in the FR network
It is not necessary to configure the pvc-group on the both ends of an FR interface. The pvc-group is used to send packets separately based on their priority. The pvc-group can be configured on one end or both two ends of an FR interface.

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