C:\TestData\ directory.
You need to 
The keystore is the one named exampleraystore created in 
the Import the Certificate as a Trusted Certificate
step.
To specify the keystore, choose the Change Keystore command in the Edit menu of the main Policy Tool window. This brings up a dialog box in which you can specify the keystore URL and the keystore type.
To specify the keystore named exampleraystore in the
Test directory on the C: drive, type the following 
file URL into the text box labeled New KeyStore URL
file:/C:/Test/exampleraystore
When you are done specifying the keystore URL, choose OK. The text box labeled Keystore is now filled in with the URL.
Next, you need to specify the new policy entry.