Hi @navayodhanreddy and a belated
Welcome to the Canvas Community,
I would like to understand a little more about what you are trying to achieve here. Are you attempting to embed an LTI in the text box of a quiz (i.e. either the description, or in a question itself)?
I have done a little research, and I have not seen mention of the possibility of embedding an LTI within a quiz to serve as almost a 'sub assessment' to the quiz. Hence I don't believe the grade passback would work in this instance where an LTI in a quiz could pass a grade back for a particular question. Though I could be wrong.
If you have some screenshots of exactly where you are trying to embed to aid with understanding this, that would be great so that I could try to look into it more for you and see if there might be any other options available. Also are you using the Quizzes.Next LTI or the existing quizzes functionality within Canvas?
Look forward to hearing from you.
Cheers,
Stuart