Since SET is one of my most commonly used tools for pentesting, it's the first tool I used as soon as I booted the live version.

On picking the no. 8 option (Wireless Attacks), it gave me two errors.
  1. airbase-ng was not found ergo it was using one in SET
  2. dnsspoof was also not found

It was easy enough to rectify. Open up a Terminal.
Change directory to set configuration folder
cd /pentest/exploits/set/config
Use Gedit to open set_config
gedit set_config
Scroll down to the end where it says dnsspoof (or search for it)

You should see an entry given below
Change this to
And if you just wanna make sure that you are using the airbase-ng in the system,
Find airbase-ng (second last entry)
Then change whatever location is written there(/pentest/wireless/aircrack-ng/src/airbase-ng) to
Some times you may have to kill an existing DHCP process to make it work correctly