Why do you try to reach oracle OS user's directory.
Also, You dont have a user called oracle it seems. Because you had to get a permission error rather than a no such file or directory error.
You are doing this operation with root. Attention please.
You have an OS admin to guide you? These are very basic things.
Anyways, delete the second key in /root/.ssh/known_hosts , with user "root"
Then retry, it will automatically add the key to the known_hosts.
Answer yes when scp asks:
[root@demoorcl ~]# scp -r root@10.123.35.62:/tmp/erm .
The authenticity of host '10.123.35.62 (10.123.35.62)' can't be established.
RSA key fingerprint is af:f4:67:71:a0:c7:46:5c:53:3b:e2:59:93:52:36:1f.
Are you sure you want to continue connecting (yes/no)? yes
Warning: Permanently added '10.123.35.62' (RSA) to the list of known hosts.
After a while, if u start the same error again, check out this,
http://stackoverflow.com/questions/20840012/ssh-remote-host-identification-has-changed