IExplore.exe is the one you need to give permission in order to be able to surf the net.

(in detail: IExplore.exe uses:
outbound TCP on ports 80, 81, 82, 83 (surfing)
outbound TCP on port 443 (SSL)
outbound TCP on port 1080 (Socks)
outbound TCP on port 3128, 8080, 8088 (proxy)
outbound TCP on port 70 (Gopher)
outbound TCP on port 21 (FTP)
inbound TCP on port 20 (FTP)
inbound TCP on port 1375 (Web folders - temporary Internet files,...)
inbound UDP on port 1040-1050 (Web folders))

If it asks for something else, it's not the real IExplore.exe

NeoWatch Manual
Events will sometimes list their source IP as 127.0.0.1. It's important to note that this IP is special, and is referred to as the loopback address. Basically, no matter what machine you're on, 127.0.0.1 always refers to yourself. This address is also referred to as localhost, as the machine name localhost will always resolve back to the IP address 127.0.0.1.

Does this mean that your machine is attempting to hack itself? Is some trojan or spyware taking over your system? Not likely. Many legitimate programs use the loopback address for communication between components. For example, many personal mail or web servers let you configure them via a web interface, usually accessible through something like http://localhost/ .