First, specify TGTRLS(V5R3M0). That will work whether you compile on Server 1 in order to run on Server 2, or you compile in the opposite direction.
Next is a little more difficult to know because you haven’t told us which “RPG” it is. Is this RPG III or RPG IV? (RPG II?)
In order to debug, you have to specify appropriate options, but the options are different for different compilers.
For RPG IV, I would specify DBGVIEW(*ALL) but DBGVIEW(*LISTING) would be good enough for you.
For RPG III, you should probably specify OPTION(*SRCDBG *LSTDBG) or at least OPTION(*LSTDBG).
Neither DBGVIEW(*SOURCE) nor OPTION(*SRCDBG) will do you any good unless you transfer the source file along with the compiled program. It doesn’t matter if a compiler exists on the other server. But you don’t need source for debugging. The listing view almost always works better for me anyway.