replace item in inventory when right clicked on entity

so im trying to replace an item when right clicked on an entity and im having some real trouble with it, i found another forum https://mcreator.net/forum/89034/trying-figure-out-how-make-item-turn-another-one-when-right-clicking-certain-block with a similar issue but for a liquid and for some reason i cannot find the "set local x_raytrace" block. can someone please send a picture of both the final product for something like this and a pic of where to find the set local block, thanks