Stages of multiplayer development:
1. Accept that latency is a thing that exists. This means that no two peers will ever see the exact same thing at the exact same time. It is basically physically impossible.
2. Design around it. This includes local input prediction, which means a peer will receive feedback for their inputs locally before the host or any other peer receives the information that they have input anything at all, and lag compensation, where the host validates that peer inputs and actions, which actually happened in the past, are valid.
Interpolation is also important, but the multiplayer plugin takes care of most of that for you so you don't have to worry too much about it.
In general, you're going to want to decide who sees what, separately, because no one will be seeing the same thing at the same time.
Thanks. I learned many important points