The line is the intersection between the planes
$x+3y=7$ and $2y+z=4$
from this I get the line on the form
$$x = 7-3\frac{4-t}{2}$$ $$y = \frac{4-t}{4}$$
How did they in my textbook go from this form to the vector form of the line:
$(x, y, z) = (1, 2, 0)+t(3, −1, 2)$.
You have $t=z$ and your equations give
$x=1+\frac{3}{2}t, y=2-\frac{1}{2}t, z=t$, with $s=2t$ we derive
$$(x, y, z) = (1, 2, 0)+s(3, −1, 2).$$