I'm working on something that says the following:

Source: http://www.inf.unibz.it/~zini/ML/slides/ml_2012_lab_05_solutions.pdf (solution 2)
I can't wrap my head around how they get that equation from that graph??
If the equation is:
X1 - X1A X2 - X2A
--------- = ----------
X1B - X1A X2B - X2A
then for their answer to work the points would have to be:
(x1, x2)
A = (0 , -1)
B - (1 , 0)
which isn't true since the line crosses A axis at 1 and B axis at -1 (like they say).
Question
How are they deriving that line equation from that given graph?
To find the equation of a line you need its gradient $m$ and its $y$ intercept.
The gradient $m=\frac{y_2-y_1}{x_2-x_2}$ this can be found because you know the points $(1,0)$ and $(0,-1)$ substituting in gives $m=\frac{0--1}{1-0}=1$
The $ y$ intercept is $-1$.
The equation of a line is $y=mx+c$ so you have $y=1x+(-1)$.
In your variables $B=A-1$ so $A=B+1$