Will motorcycle be able to travel on hilly roads with two passengers ?

Yes, you may travel with Yamaha FZ-FI V3 in a hilly area. But we wouldn't recommend it because, with a kerb weight of 135kg and an engine of 149cc 2-valve single-cylinder engine, you may face difficulty. There are other risks also such as overheating etc. Though the bike will do the job nicely, long-term usage over such terrains might hamper engine health. Moreover, we would suggest you to take a test ride before making the final decision. Follow the link and select your desired city for dealership details.