I am new to orchard CMS. I have downloaded the source code from http://orchardproject.net/ . I am not able to find the Edit link around the contents as in the screen shots
You need to enable the Content Control Wrapper and/or Widget Control Wrapper features in "Modules" screen. Since 1.4 those features are optional.
Regarding the "inline" editor question - no, there's currently no inline editing feature in Orchard. Enabling the mentioned features will only make the "Edit" links appear on the front end. Clicking those will redirect you to appropriate edit screen in the admin Dashboard.