Let $t(x_{1},...,x_{m})$ and $\tau_{1} (y_{1},...y_{n}),...,\tau _{m}(y_{1},...y_{n})$ be L-terms. Then the L-term $ t^{*}(y_{1},...y_{n}):=t(\tau_{1} (y_{1},...y_{n}),...,\tau _{m}(y_{1},...y_{n}))$ has the property that if $\mathcal A$ is an L-structure and $a=(a_{1},...,a_{n})\in A^{n}$, then
$(t^{*})^{\mathcal A}(a)=t^{\mathcal A}(\tau_{1}^{\mathcal A}(a),...,\tau_{m}^{\mathcal A}(a))$.
For solving this problem I had this following approach.
Let $t=t(x_{1},...,x_{m})=Fs_{1}(x_{1},...x_{m})...s_{k}(x_{1},...x_{m})$, then $t^{\mathcal A}(b_{1},...,b_{m})=F^{\mathcal A}(s_{1}^{\mathcal A}(b_{1},...b_{m})...s_{k}^{\mathcal A}(b_{1},...b_{m}))$ for all $(b_{1},...b_{m})\in A^m$. Now we substitute $\tau _{i}^{\mathcal A}(a)$ in $b_{i}$ for all $i$, where $a\in A^{n}$. So we have
$a_{0}:=t^{\mathcal A}(\tau _{1}^{\mathcal A}(a),...,\tau _{m}^{\mathcal A}(a))=F^{\mathcal A}(s_{1}^{\mathcal A}(\tau _{1}^{\mathcal A}(a),...,\tau _{m}^{\mathcal A}(a)),...,s_{k}^{\mathcal A}(\tau _{1}^{\mathcal A}(a),...,\tau _{m}^{\mathcal A}(a))$
but if we have used induction on the complexity of the terms we could say $s_{i}^{\mathcal A}(\tau _{1}^{\mathcal A}(a),...,\tau _{m}^{\mathcal A}(a))=(s_{i}^{*})^{\mathcal A}(a)$ because $s_{i}^{*}(a)=s_{i}(\tau_{1}(a),...,\tau_{m}(a))$ for $1\leq i\leq k$.
Now we have $a_{0}=F^{\mathcal A}((s_{1}^{*})^{\mathcal A}(a),...,(s_{k}^{*})^{\mathcal A}(a))$.
after this point I can't reach anything practical to obtain the goal of the problem, and maybe my strategy is wrong, so please help if you could to further this solution.
Regards
Yes, the proof needs induction on the complexity of the terms, where by the degree of complexity of a term $t$ we mean the number $n$ of occurrences of function symbols in $t$.
We will consider a simple case, with only one $\tau_i$; thus, we have to show that :
The base case ($n=0$) is easy : if $t := x$ then $t(x/ \tau) := \tau$.
We are left with the case when $t := f_n s_1 \ldots s_n$, where $f_n$ is an $n$-ary function symbol and $s_1, \ldots, s_n$ are terms, with complexity less than $n$.
Then $t^∗ = t(x/ \tau) := f_n s_1(x/ \tau) \ldots s_n(x/ \tau)$.
We have that :
where the equlity holds by the semantical specifications; this is, using the "abbreviation" $s^*$ :
Now we apply the induction hypotheses to get :
but this in turn is :