In the induction proof below where $[a_0; a_1,\ldots, a_h]$ is a continued fraction, could someone please clarify which induction method is being used here? Is it:
an induction over $i$ and $h$ i.e. show for each $h\in \mathbb{N}_0$ that it the result holds for all $-1\leqslant i \leqslant h$.
an induction only over $i$. Where $h$ is just a given value in $\mathbb{N}_0$
I initially assumed it was the first option but I struggled a lot and wasn’t able to do the ‘straightforward’ induction. If it is the second option then why for the base step is the result proven for $i=-1$ and $i=0$ and not just for one value?

Option 2: It's definitely option 2.
This is induction over $i$ for a fixed $h$.
Of course $h$ could be any value as there is nothing it the proof that requires any specific qualities of $h$ (other than $h\in \mathbb N_0$).
Don't be confused in that this is a proof by induction on one variable, $i$, but a proof by generality on another, $h$. Don't forget a "proof by generality"--- to prove something is true for all values of a set $G$, which can be $\mathbb N_0$ or any other set, by arbitrarily picking a value, $w\in G$, and showing it is true for $w$, therefore it is true for all elements in $G$ because ... there was nothing special about $w$--- is still valid.
so the statement is: For any $h\in \mathbb N_0$ and for an $i: 1\le i \le h$ then .... something.
And the proof goes like: