Example 12.38 from the book Advanced Calculus by Patrick M. Fitzpatrick is trying to say that the assertion "sequentially compact if and only if X is a closed bounded" does not necessarily hold for all metric spaces.
The counterexample is the subset of $C([0, 1], \mathbb{R})$ consisting of all continuous functions such that $|f(x)| \le 1$ for all $x$ in $[0,1]$. It then claims that this subset is closed and gives the sequence of functions $f_k(x)=x^k$ as a counterexample for the subset not to sequentially compact.
But the problem is that this subset is not closed because the same sequence of functions $f_k(x)=x^k$ converges to the function that satisfy $|f(x)| \le 1$ for all $x$ in $[0,1]$ but it is not in $C([0, 1], \mathbb{R})$ contradiction to the definition of closedness of a set. Am I right?
No, you're not right. In the metric $d(f,g) = \sup \{|f(x) - g(x)|: x \in [0,1]\}$ that is used on this space $X= C([0,1],\mathbb{R})$, the sequence $f_k$ does not converge at all. So it cannot be a counterexample to closedness of the set $C= \{f: \forall x: |f(x)| \le 1\}$, because then there has to be a function $f \in X$ (!) such that $f_k \to f$ with $f_k \in C$ for all $k$ and $f \notin C$, because we are talking about closed sets in $(X,d)$.
Suppose $f_k$ did converge to some $f \in X$. Then it has to converge pointwise to $f$ too, as $|f_k(x) - f(x)| \le d(f_k,f) \to 0$ for any fixed $x \in [0,1]$, and this forces $f(0) = 0$ for $x \in [0,1)$ and $f(1) = 1$, which contradicts the continuity of $f$.
$C$ is bounded by definition, as it is just the closed ball of radius $1$ around the $0$-function, it is closed too: suppose $g \notin C$, then there is some $p \in [0,1]$ with $|f(p)| > 1$. Then it's easy to check that, setting $r = 1-|f(p)| >0$, $B_d(g,r) \cap C =\emptyset$.
The fact that no subsequence of $(f_k)$ converges (the argument I gave also works for any subsequence) shows that $C$ is not (sequentially ) compact, as claimed.