[guided]The point of this step is to justify that no intersection multiplicity is lost or changed when we pass from the affine plane to the projective closure on the chart $Z\ne 0$.
Let $U_Z\subset\mathbb P_k^2$ be the standard affine chart where $Z$ is nonzero. The map
\begin{align*}
\psi:\mathbb A_k^2\to U_Z
\end{align*}
is defined by
\begin{align*}
(a,b)\mapsto [a:b:1].
\end{align*}
Its coordinate-ring form is the isomorphism
\begin{align*}
\theta:k[x,y]\to (k[X,Y,Z]_Z)_0
\end{align*}
with $\theta(x)=X/Z$ and $\theta(y)=Y/Z$. This says algebraically that functions on the affine chart are obtained by setting the projective coordinate $Z$ equal to $1$.
Now fix $q=(a,b)\in C(k)\cap D(k)$, and let $p=[a:b:1]$ be the corresponding projective point. The affine local ring at $q$ is $k[x,y]_{\mathfrak m_q}$, where
\begin{align*}
\mathfrak m_q=(x-a,y-b).
\end{align*}
The projective local ring at $p$ may be computed inside the chart $U_Z$, so it is the localization of $(k[X,Y,Z]_Z)_0$ at the maximal ideal corresponding to $p$. Under the chart isomorphism, these two local rings are isomorphic.
It remains to check that the two equations match under this local-ring identification. Since $F$ is the degree-$m$ homogenization of $f$, dehomogenizing on $Z\ne 0$ gives
\begin{align*}
\theta(f)=F/Z^m.
\end{align*}
Similarly,
\begin{align*}
\theta(g)=G/Z^n.
\end{align*}
The elements $Z^m$ and $Z^n$ are units in the chart local ring because $Z\ne 0$ on $U_Z$. Therefore the ideals generated by $F$ and $G$ are the same as the ideals generated by $F/Z^m$ and $G/Z^n$ in the local ring at $p$.
Consequently the chart isomorphism induces an isomorphism
\begin{align*}
k[x,y]_{\mathfrak m_q}/(f,g)k[x,y]_{\mathfrak m_q}\cong \mathcal O_{\mathbb P_k^2,p}/(F,G)\mathcal O_{\mathbb P_k^2,p}.
\end{align*}
Local intersection multiplicity is the length of precisely this local quotient. Isomorphic local quotient rings have the same length, so
\begin{align*}
I_q(C,D)=I_p(\overline C,\overline D).
\end{align*}[/guided]