Because of the error end event, the microflow will not be completed and therefore the transaction is not successful. Only after a successful transaction the changes would be committed. This means in this case, everything is rolled back. If this is the required behavior, your microflow is correct.
For detailed information about the different options in error handling you can refer to this section in the documentation and there is a nice Learning Path (advanced level)
Hi RamaKrishnaDatt Vuppala,
As per my idea, the microflow is correct. The error event is used to define the success factor of the microflow. If the logic fails and we are using the error event to end the error handler flow, the object will automatically rollback and will get the content of your administrator error in the UI. And the transsection of the microflow will also be ended.