your code is looking for it at /home/peter/Downloads/iotdk-ide-linux/devkit-x86/sysroots/x86_64-pokysdk-linux/usr/include/python2.7/pyconfig.h
Do you also have a copy of pyconfig.h in the iotdk subdirectories, you may need to look for it in the /home/peter/Downloads/iotdk-ide-Linux/devkit-x86/sysroots/x86_64-pokysdk-linux/user/include and sub dirs.