@Rohan56 It isn't your settings that are wrong, it's the way you have listed.
You need to create a separate listing for each room. So if you have 10 rooms, you need 10 listings. If each room has one bed for 2 guests, that listing needs to say 1 bed, 2 guests.
On each listing, only have photos of that room (unless all the rooms look exactly alike), plus whatever communal areas there are.
Then you can say in each listing description that it is a guest house and you have XX number of rooms for rent and that if guests need more than one room, to click on your profile to see the other room listings.