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In my keyboard when I pressed this key

enter image description here

Then I get/display '§' (with shift+key -> '±' ) instead of what expected.

How can I set it to work properly?

Also after Googling I found this site but this did not help me.

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In the Input Sources tab of system prefs/language & text, make sure the box for British is not checked and only the box for US is checked. Does this change things? – Tom Gewecke Mar 13 '13 at 13:11
That's the exact button as programmed for a mac keyboard. You might find settings in your keyboard preferences to change this manually. – Rob Mar 13 '13 at 13:29
@TomGewecke- yup...i checked it...US is Checked..:) – iPatel Mar 13 '13 at 13:55
Thanks, that is helpful (assuming British is NOT also checked), and I modified my answer slightly. – Tom Gewecke Mar 13 '13 at 14:52

My guess is that your machine thinks the keyboard "type" is English (International) ISO, when it is really English (USA) ANSI. This article may help:

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