See page 53 of Hatcher's Algebraic topology for reference to image. Consider two arcs $\alpha$ and $\beta$ embedded in $D^2 \times I$ as shown in the figure. The loop $\gamma$ is obviously nullhomotopic in $D^2 \times I$, but show that there is no nullhomotopy of $\gamma$ in the complement of $\alpha \cup \beta$.
My reasoning is to consider the fundamental group of the space $(D^2 \times I) - (\alpha \cup \beta)$. To calculate the fundamental group of this space, we let $X = D^2 \times I, A = X - S^1$ and $B = X - S^1$ in such a way that $A \cap B = X - (\alpha \cup \beta)$. So by van Kampen's theorem, we have an isomorphism $$\frac{\pi_1(A) \ast \pi_1(B)}{N} \cong \pi_1(X).$$ This is given by $$\frac{\mathbb{Z} \ast \mathbb{Z}}{N} \cong 0$$ This obviously does not work and I'm not sure of how to proceed.

Here are the details of @Whyka's answer worked out. I believe $\gamma$ represents a commutator of generators in $F_2$. Here's the original layout given in the problem:
We shrink $\gamma$ as to move it off of the boundary of the cylinder. We can then move the bottom strand of $\beta$ across the front of the cylinder to the left, and the bottom strand of $\alpha$ across the back of the cylinder to the right:
We would now like to untangle $\alpha$ and $\beta$ by moving the left strand of $\alpha$ in front of the left strand of $\beta$. In order to do this, we first adjust $\gamma$ to make room:
Finally we can untangle $\alpha$ and $\beta$ by moving the left strands into the "crevices" created in $\gamma$ in the previous step:
After we deformation retract onto $S^1\vee S^1$, we see that $\gamma$ indeed represents a commutator of generators in $\pi_1(S^1\vee S^1)\cong F_2$.