Should I attempt an interview for the different location where I am not ready to relocate? Will they change location after releasing offer?

That would be lying to them and they would definitely not consider you for future roles.

Just attempt the interview, and tell them you would like to work from your current location if possible and aren't comfortable relocating. If they want to continue, they will, else no.

Don't wait until you receive the offer letter and then tell them.

Or shall I wait for the opportunity at my location?