The sensor only knows the air pressure where you are.
To calculate you your altitude, you have to tell the library the current pressure at sea level. Since you don't provide that value it assumes a constant: 101325. If that constant is not correct, your altitude will not be correct.
To calculate the pressure at sea level you have to tell the library your altitude. Since you don't provide that value it assumes you are at altitude zero (sea level). If that is not correct, your sea level pressure will not be correct.