I am a student of software Engineering . I am very confused about selecting my final year project

Think back to your own history. Was there ever a time when you thought "damn, it would be cool if XXX software existed" or "this runs like crap, it should be like xxx" Do that. If you haven't, look at modern society and consider what needs are not being filled by software or how shitty software could be made better. As a software engineer, you are going to need to find innovative solutions to problems, tracking system performance and figure out what is going wrong, how to improve it or at least monitor it. I'd stick within those lines but pull it from your past. You'll be more passionate about it.