4-20 mA Loop voltage Implementation using XTR115
I used 7805 regulator to Implement Vloop and this is my Schematics.
  will this work?


No, it will fail miserably. The XTR115 has an internal 5 volt regulator and so it will expect \$V_{LOOP}\$ to be significantly higher than 5 volt and probably in the region of 10 to 30 volts (without checking). 

OK I've just checked and it needs to be at least 7.5 volts and typically is 24 volts: -