Note that in this problem we are counting all $1-$cycles when computing $r$. For example, if we are in $S_4$ and we have the permutation $\sigma = (1 \ 2)$, $r$ in this case would be $3$ because $(1 \ 2)$ can be also written as $(1 \ 2)(3)(4)$. In this case, it is obvious that we can indeed write this as $4-3=1$ transpositions.
The trouble is that I'm not quite sure how to approach this question. I tried some things with induction (on $r$) and it doesn't seem to work for me. The base case when $r=1$ is quite simple but I cannot get the induction step to follow.
I also tried constructing an argument that would use the fact that each cycle of length $k$ can be written as exactly $k-1$ transpositions, but I'm not quite sure how to morph that into something that would produce a complete proof.
As always, any and all help is much appreciated.
Fix the integer $m \ge 1$.
Statement $\quad \mathcal C(r): \;$ Any permutation $\sigma$ of a set $X$ with cardinality $n$ less than or equal to $m$ that can expressed as the product of $r$ disjoint cycles can be expressed as the product of $n-r$ transpositions.
Induction on $r$
Base Case: $r = 1$ - ✔.
Step Case:
Assume $\mathcal C(r)$ is true for $r \ge 1$ and let $\sigma$, a permutation on a set with $n$ elements where $n \le m$, be decomposed into $r+1$ disjoint cycles ,
$\tag 1 \sigma = \bigr(\sigma_1 \circ \dots \circ \sigma_r \bigr) \circ (\sigma_{r+1})$
Let $k$ be the length of cycle $\sigma_{r+1}$ so that
$\quad \sigma_1 \circ \dots \circ \sigma_r$
represents a permutation on a set with $n - k$ elements as the product of $r$ cycles. Since $\mathcal C(r)$ is true and $n - k \le n \le m$, it can be expressed as $(n - k) -r$ transpositions.
Also, $\sigma_{r+1}$ can be expressed as $k - 1$ transposition (see base case).
Substituting these transposition back into $\text{(1)}$ we see that $\sigma$ can be written as
$\quad \bigr(n - k -r\bigr) + (k - 1) = n -(r+1)$
and the induction is complete.