In an example in the book, Thomas Calculus 14e:
Q: Show that sequence $\{(-1)^{n+1}\}$ diverges?
A: They choose $\varepsilon$ to be $1/2$ and thus, $|L-1|<1/2$ for $+1$ and $|L+1|<1/2$ if value converges to $+1$, where $L$ is the value to which the sequence converges. On solving both equations, we get no common solution, thus no such limit $L$ exists and thus the sequence diverges.
My question: If we choose $\varepsilon$ to be $3$ or any number greater than it, then the above inequalities give a solution, so does it mean the sequence converges??
Also later it states, a sequence can diverge without diverging to $\pm \infty$, how is that relevant and possible?
No.
The definition of convergence states that it is true for any $\epsilon > 0$, not just for a particular one.
So, if the definition of convergence fails for a particular $\epsilon$, then the sequence diverges.