Proof Algebraic geometry R. Hartshorne

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In book Algebraic geometry R. Hartshorne

I'm confused in the proof of theorem 3.4 first chapter.

1) In the first paragraph of the proof the theorem 3.4: what is the significance of "this isomorphis sends $I(Y_i)$ to $I(Y)S_{(x_i)}$"?

My question is: $I(Y)S_{(x_i)}=I(Y)S_{x_i}\cap S_{(x_i)}$??