Standard DVD can contain progressive or interlaced material, but is always packaged in an interlaced wrapper. Your other source material was shot either interlaced or progressive. Keep that mode as the standard for your DVD and adjust this one minute animation to match that.
Footage was shot in Interlace mode but when i create AVI in Interlace mode it cause lines on Premiere pro monitor. Prograssive is much better in animations or slidshows.
You can also try this.
Right Click on the clip in the timeline and choose "Field Options"
Then choose Always Deinterlace.
Then Try to output the video again.
Interlace mode it cause lines on Premiere pro monitor.
You should never trust the built-in monitors to judge quality. They are for viewing content only.
Once you make the DVD and watch it on TV, it will look fine.