is there will be free distribution?

No free distribution.

Indivisible coins mean no amount under 0.

Correct. No fractional RARECOIN can ever exist. 1 RARECOIN is the smallest unit.

how about the transaction fee

RARECOIN exists on the Bitcoin blockchain as a Counterparty asset. To trade or transfer Counterparty assets you have to pay Bitcoin transaction fees. So, to trade or transfer RARECOIN you have to pay Bitcoin transaction fees:

http://counterparty.io/docs/faq-counterwallet/#why-do-i-need-small-amounts-of-bitcoin-to-do-things-in-counterwallet

http://counterparty.io/