Here $b$ is irrelevant to the question.
Would anybody explain how Schwarz and Hölder are used in the last inequality?
[Added:] Things boil down to proving $$ \sum a_ib_ic_i\leq \left(\sum a_i^2\right)^{1/2}\left(\sum b_i^2\right)^{1/2}\left(\sum c_i^2\right)^{1/2} $$ where $a_i,b_i,c_i\geq 0$. But I only got $$ \sum a_ib_ic_i\leq \left(\sum a_i^2\right)^{1/2}\left(\sum b_i^4\right)^{1/4}\left(\sum c_i^4\right)^{1/4}. $$


As said in my comment:
first do Cauchy-Schwartz on the $i$ index, then on the $j$ index (or conversely). Then it follows directly \begin{align*}\sum_{ij}a_ib_{ij}c_{j}& =\sum_j\left(\sum_ia_ib_{ij}\right)c_j\\ & \leq\left(\sum_ia_i^2\right)^{1/2}\cdot \sum_j\left(\sum_ib_{ij}^2\right)^{1/2}\cdot c_j\\ & \leq \left(\sum_ia_i^2\right)^{1/2}\cdot \left(\sum_j\underbrace{\left(\left(\sum_ib_{ij}^2\right)^{1/2}\right)^{2}}_{=\sum_ib_{ij}^2}\right)^{1/2}\cdot \left(\sum_jc_j^2\right)^{1/2}\\ & =\left(\sum_ia_i^2\right)^{1/2}\cdot \left(\sum_{ji}b_{ij}^2\right)^{1/2}\cdot \left(\sum_jc_j^2\right)^{1/2} \end{align*}