I just solved my problem.
Goto Options > Playback > under Rewind and Fast forward,
I changed the rewind step (ms) to 300. This seems to have solved the issue for now.
Update: The problem came back again.
I'm facing the same issue of lag. When I click the play button/rewind/ or any other there is a 2-3 second lag before the button works. I did not experience it on my old laptop but I just recently purchased a new laptop and I am facing this issue on the new one.