How do I simulate SMS Received?

Have you done the NoTextingWhileDriving tutorial? If not, do that first before attempting to work with the Arduino. Read No text while driving compiling not working - #10 by Nicholas_Cossentino the discussion talks about NTWD changes to the original tutorial necessitated by recent Google security requirements.

Can you confirm you have the NTWD app working by sending a Text message to yourself?
because at the moment

and you cannot really test using the Arduino until you establish whether the Android code is working. Your problem might be with the Arduino sending the message.