Photon 2d game multiplayer lags

I have a 2D multiplayer game using Photon where all the movements are made by RigidBody 2d. When both players are connected I can see my opponent movements but they are not smooth. Last Update Time variable is set to 0.25.

 using UnityEngine;
 using System.Collections;
 
 public class NetworkCharacter : Photon.MonoBehaviour {
 
     Vector3 realPosition = Vector3.zero;
     Quaternion realRotation = Quaternion.identity;
     public float lastUpdateTime = 0.1f;
     // Use this for initialization
     void Start () {
         
     }
     
     // Update is called once per frame
     void FixedUpdate () {
          if(photonView.isMine){
             //Do nothing -- we are moving
         }
         else {
             transform.position = Vector3.Lerp(transform.position, realPosition, lastUpdateTime);
             transform.rotation = Quaternion.Lerp(transform.rotation, realRotation, lastUpdateTime);
         }
     }
 
     public void OnPhotonSerializeView(PhotonStream stream, PhotonMessageInfo info){
         if(stream.isWriting){
             //This is OUR player.We need to send our actual position to the network
             stream.SendNext(transform.position);
             stream.SendNext(transform.rotation); 
     }else{
             //This is someone else's player.We need to receive their positin (as of a few millisecond ago, and update our version of that player.
             realPosition = (Vector3)stream.ReceiveNext();
             realRotation = (Quaternion)stream.ReceiveNext();
         }
     
     }
 }