Steps of construction:
1. Draw a ray AX.
2. With A as the centre, cut the ray XA at B, such that AB is equal to 3.5 cm.
3. With B as the centre and with any convenient radius, draw an arc cutting AX at M and N.
4. With N as the centre and with radius more than half of MN, draw an arc.
5. With M as the centre and with the radius same as before, draw another arc to cut the previous arc at Y.
6. Draw BY and produced it to W.
7. With B as the centre and a radius of 5.4 cm, cut ray BW at point C.
8. With C as the centre and a radius 3.5 cm, draw an arc on the right side of BC.
9. With A as the centre and a radius 5.4 cm, draw an arc cutting the previous arc at D.
10. Join CD and AD.
ABCD is the required rectangle.