Let $M$ and $N$ are two integers with $m < n$. Let $A = \{m, m+1, ... , n\}$ and let $\min$ be the function that returns the smaller of its two arguments.
So the function's zero is $m$ because you get it back out no matter what numbers you put in, $n$ is the identity because you always get back the number that you input in with it.
Where I'm lost is finding if this has an inverse. The book states that if $x y = y x = u$ holds then the element $y$ in $C$ is called an inverse. How would I find what the inverse in the function is?
I interpret your question as "We define $f:A\times A\to A$ by $f(a,b)=\min(a,b)$. Does $f$ have an inverse?"
No, since more than one value in the domain maps to a single value in the range: $f(m,m+1)=f(m,m+2)=m$.