Error while trying to create new Rails application skeleton

I installed Ruby 1.9.3 and later installed Rails using command:

gem install rails

I don’t know which version of Rails got installed but when I try to create a new Rails application from the console using:

rails new MyApp

It crashes somewhere while performing:

run bundle install

The Internet is connected but each time I try to create a new application, it crashes somewhere or the other.

Below is the image when it crashed while installing Coffee Script:

enter image description here

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