Suppose $G$ is a group and $K$ is a subgroup of $G$. If $h\in G$, is it true that
$$hKh^{-1}=K \Leftrightarrow h^{-1}Kh=K?$$
I am reading a proof on page 94 of Dummit and Foote's Abstract Algebra, 3rd edition.
I am guessing we have $h^{-1}hk\in K$ (the highlighted part) because the above statement holds. Could someone please verify?

Your statement is true.
Since $N_G(K)$ is a subgroup, $$hKh^{-1}=K\iff h\in N_G(K) \iff h^{-1}\in N_G(K) \iff h^{-1}Kh=K$$ As stated in comment, you just have to notice that for $h\in H$, $h^{-1}\in H\le N_G(K)$. Hence $h^{-1}kh\in K$.