little bit confusion about else indentation

Method 1:

n = 6
for i in range(2, n):
    if n%i==0:
        print 'Not Prime Number'
        break
else:
    print 'Prime Number'

Output:

Not Prime Number

Method 2:

n = 6
for i in range(2, n):
    if n%i==0:
        print 'Not Prime Number'
        break
print 'Prime Number'

Output:

Not Prime Number
Prime Number

i want to know that "Method 1" is working absolutely fine but else indentation is not under the if statement so how it's working fine? anyone can elaborate this with simple example? Note: this question was asked by interviewer