--- Quote Start ---
When you have this line:
IOWR(ONCHIP_MEMORY2_1_BASE, 0x3fe, "THIS IS TO TEST HOW MUCH DATA CAN A MEMORY SPACE CONTAIN");
The C compiler will reserve 57 bytes in the .data section and put the string in there. If you use the default settings for the linker script, the .data section will end up in main RAM with your software code.
--- Quote End ---
Actually the 57 bytes will end up in the .rodata.str1.4 section and the default linker script will merge this with all the readonly code sections (rather than the read-write data sections).