SGA I.3 claims the following three properties of a finite type morphism $X \rightarrow Y$ are equivalent (Let $x \in X$, $y = f(x)$:
Let $A$ be the stalk of $X$ at $x$, and $B$ be the stalk of $Y$ at $y$. Let $m_a, m_b$ be their respective maximal ideals. The morphism of sheaves then determines a morphism $g$ of local rings in the other direction.
i.) $g(m_b)$ generates $m_a$, and $\frac{A}{m_a}$ is a finite separable extension of $\frac{B}{m_b}.$
ii.)The stalk of $\Omega^1_{X/Y}$ is 0 at $x$.
iii.)The diagonal morphism is an open immersion in a neighborhood of $x$.
I don't understand their proof that i.) implies ii.); It is just written that Nakayama's immediately reduces it to the case where X and Y are spectrums of fields. Can anyone please elaborate?