How is the Nginx server configured to display webp images correctly?

I have set up the plugin to automatically convert images to webp format after uploading them. When I upload a new image, I do find an additional file generated by the plugin that ends in .webp.

However, when I access the site on the front end, it seems that the site still displays the .jpg version.

My server is Nginx and PHP already has the imagemagick extension installed, do I need to set it up additionally?

I didn’t find a solution for Nignx server related settings in the documentation provided on the official website.

Looking forward to your replies, thanks!