Screen size incompatibility in IOS 7.1 (Iphone 5) created using Xcode 6.1.1 [on hold]

I am a beginner to IOS development and I was following Getting Started guide from Apple Developer Documentation.

Apps created using IOS SDK 8.1 in Xcode 6.1.1 appears differently in IOS 7.1 (iphone 5). There is an empty space in top and bottom, I confirm that it appears like that in actual device also.

However it appears as expected in IOS 8.1 devices.

Apple Documentation of Size Class on earlier IOS version doesn't help me, I even tried disabling the size class but the problem still persists.

Could someone direct me. Remember I just started to learn IOS.