Use the following in the document setup dialog:
Page size: W 9" x H 10.8125"
Bleed: .125" in all 4 boxes
Margins left & right: .3125
Margins top & bottom: .2813"
Explanation:
Trim size means the actual final size of the document which is the page size.
Bleed is additional area outside of the final size that will be trimmed off.
Live area is the area within the actual size that can be used for text and artwork (other than the background)
That said, the margins look a little funny to me as in my experience, live size is usual even on all sides so all margins are usually the same. However, I suppose that they can be different.