This is the math. This is the given solution :-
Now, my problem here is, $\angle ABC$ and $\angle DAC$ are supposed to be alternate angles here, and thus equal.
But as far as I know, angles are alternate only when a transversal intersects two parallel lines.
But in the given figure, there are no such transversals or parallel lines.
So how can we prove that, $\angle ABC = \angle DAC$?
I think what the solution meant to refer to was the alternate segments theorem:
The angle $\angle ABC$ is the angle in "the alternate segment" because it is the angle subtended by the chord $AC$ at $B,$ because $B$ is in one of the segments into which the chord $AC$ cuts the circle, and because the segment $B$ is in is the one that is not included in the angle $\angle DAC$ (making it the "alternate" segment).