Don't even try.
You can't do it the way you want, because UPDATE works on a row at a time, so you can't say "first use this value, then that for the next row" - and if you think about it, it's obvious why. What happens if you had four rows using the same subject? What should SQL do with that?
You could possibly do it - unless you have created the column as an IDENTITY field - but, it's fraught with risks.
The idea of an ID field is that it provides a way for everything to know precisely which row you are talking about - it should be a unique value which remains with teh row for it's entire life. So if you have to add a second student with the name "Kiran":
Kiran 5 Geography
You can refer to each Kiran separately by using the ID value, since they will not be the same.
Changing the ID is a bad idea, partly because there will be an intermediate stage where identical ID exist, and partly because in a well designed system you will other tables which depend on the ID value to "link" the data together. For example, you could easily have a second table holding addresses which uses the ID as a "foreign key" to tie the address details to the student. For example, I would use a second table which held "known subjects" and use an ID field to link that to the students instead of duplicating the subject names.
Why do you think that renumbering these would be a good idea? It's almost certainly not!