that gpu is too old and outdated. it does not have shadermodel 6.5, but 5.1. nor is 2 gb of vram enough to run anything but forward rendering or a really small gbuffer. you could run a really low end setup in dx11 but not the highend deferred settings. might aswell use ue 4.2x.
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ok, thanks, gotta face reality than )
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you can still dev games, just not the highend graphics. jsyk i did 4.26 android/mobile style game dev on my old laptop, 2 years ago. that gpu was even weaker then yours. baking and rocking just fine tho. you might aswell try a chill setup. it will work if you get it set up. 
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