Hi Shafdev
You scenario can be implemented by using "Business Rule" functionality in D365. See the following steps.
1. Navigate to form editor (your desired form).
2. Choose business rules in the Home Tab (top navigation)

3. On the right hand side you will see business rules pane. Click on "New Business Rule"'

4. In the condition control, fill in your condition (If Status = Inactive) and click apply

5. From the components tab, drag and drop the desired components if condition is true i.e. right side of the condition(Set visibility, set business required)

6. Set value in each control appropriately.
6.1. Set visibility: Choose your desired field (in my example i chose 'city') and visible = yes. Click Apply

6.2. Set Business Required: Choose your desired field (in my case i chose 'city') and status = business required. Click Apply

7. Similarly add the controls if the condition is false (bottom of condition control).
7.1. Control: Set business required. status = Not business required

7.2. Control: Set visibility. Visible = No

8. Save, validate
9. Choose scope = [Appropriate form name] if you need it in single form. OR "All forms" if you need in all forms. OR "Entity" if you need at the entity level.
10. Activate.
Let me know if it works for you.