How I configure DemoACServerApplication in my local IIS?

Please help to configure

http://localhost:8732/DemoACServerApplication/WebService/

In the DemoAccessControlPlugin\SvcRef\DemoApplicationService have wsdl and some xsd. I can’t host those.

You should not configure DemoACServerApplication in local IIS. DemoServerApplication is an execute file so you just need to run it as it is.