Selenium IDE - Inspecting web elements from Local Host Website

In case of Hosted Websites 

when ever we are start recording for testing on particular web page 
automatically steps are create based on selection of the web elements.

In case of non Hosted Websites (Local Host Website)

Only Website is opened but the problem is recording can't recognize the elements so that further commands are not create. 

To over come the above problem we have to change the settings for Selenium IDE plugin as follows

Once we can change the the settings come back to Selenium IDE do the following steps