1) Go into System Settings > Sound > Input
2) Under Input tab check to see if MacBook Air Microphone is showing under Name
3) Next to Input volume make sure volume level is turned up[level indicator should be close to right microphone icon]
4) Open QuickTime Player > File > New Screen Recording
5) At bottom of screen recording select Options > MacBook Air Microphone
6) Go back to screencast assignment and test microphone