Thus, if $P_m$ is the projector onto the $m$ eigenspace of the
observable $M$
Let $\left|m_1\right> \ldots \left|m_n\right>$ be a basis of the $m$ eigenspace of the observable $M$. This means that any state $\left|\psi_m\right>$ which is an eigenstate of $M$ i.e.:
$$M\left|\psi_m\right>=m\left|\psi_m\right>$$
can be written as:
$$\left|\psi_m\right>=\sum_i \alpha_i \left|m_i\right>$$
for some constants $\alpha_i$.
Now consider a general state $\left|\psi\right>$ which can be written as:
$$\left|\psi\right>=\sum_n\sum_i \alpha_{n,i}\left|n_i\right>$$
here $n$ denotes the eigenvalue associated with $M$ and the sum of $i$ is the sum over all orthonormal states with this eigenvalue. The projection operator acts as follows:
$$P_M\left|\psi\right>=\frac{1}{\sqrt{\sum_i|\alpha_{m,i}|^2}}\sum_i\alpha_{m,i}\left|m_i\right>$$
where the factor out front is a normalization factor.
You can see here that we have just kept the states with eigenvalue $m$.
then the corresponding projector for $\tilde M$ is
$P_m \otimes I_B$. We therefore have
Let us call this corresponding projector $\tilde P_m$. Then we need to ask ourselves; what is the action of $\tilde P_m$?
Well we define it to be the projector which projects a general ket:
$$\left|\psi_A\right>\otimes \left|\phi_B\right>$$
onto the $m$ eigenspace of the observable $M\otimes I_B$.
For a general operator $A\otimes B$ the action on a general state is:
$$(A\otimes B)(\left|\psi_A\right>\otimes \left|\phi_B\right>)=(A\left|\psi_A\right>)\otimes (B\left|\phi_B\right>)$$
So in our case we have that:
$$(M\otimes I_B)(\left|\psi_A\right>\otimes \left|\phi_B\right>)=(M\left|\psi_A\right>)\otimes (I_B\left|\phi_B\right>)$$
It should be evident then that the $m$ eigenspace of $M\otimes I_B$ takes the form:
$$(\sum_i \alpha_i \left|m_i\right>)\otimes \left|\phi_B\right>$$
where $\left|\phi_B\right>$ is any ket in $B$. Since then:
$$(M\otimes I_B)(\sum_i \alpha_i \left|m_i\right>)\otimes \left|\phi_B\right>=(\sum_i \alpha_i M\left|m_i\right>)\otimes (I_B\left|\phi_B\right>)=(\sum_i \alpha_i m\left|m_i\right>)\otimes \left|\phi_B\right>=m(\sum_i \alpha_i \left|m_i\right>)\otimes \left|\phi_B\right>$$
Like we had before we can write an arbitrary state as:
$$(\sum_n\sum_i \alpha_{n,i} \left|n_i\right>)\otimes \left|\phi_B\right>$$
and by definition we need:
$$\tilde P_m(\sum_n\sum_i \alpha_{n,i} \left|n_i\right>)\otimes \left|\phi_B\right>=(\sum_i \alpha_{m,i} \left|m_i\right>)\otimes \left|\phi_B\right>$$
So consider the action of $P_m \otimes I_B$
$$(P_m \otimes I_B)(\sum_n\sum_i \alpha_{n,i} \left|n_i\right>)\otimes \left|\phi_B\right>=(P_m\sum_n\sum_i \alpha_{n,i} \left|n_i\right>)\otimes I_B\left|\phi_B\right>$$
$$=(\sum_i \alpha_{m,i} \left|m_i\right>)\otimes \left|\phi_B\right>$$
where we used the action of $P_m$ as found above. Now this holds for all vectors in $\tilde M$ since we have being using general vectors throughout. Thus we must have that:
$$\tilde P_m=(P_m \otimes I_B)$$
tl;dr Version
The action of $(P_m \otimes I_B)$ on a general state in $\tilde M$ is:
$$(P_m \otimes I_B)(\left|\psi_A\right>\otimes\left|\phi_B\right>)=P_m\left|\psi_A\right>\otimes I_B\left|\phi_B\right>$$
$$\left|\psi_A^m\right>\otimes \left|\phi_B\right>$$
where $\left|\psi_A^m\right>$ is the projection of $\left|\psi_A\right>$ onto the $m$ eigenspace of $m$. This is by definition the action of the corresponding operator in $\tilde M$ and as such $(P_m \otimes I_B)$ is that opeartor.