As for where I am getting my Peano Axioms, its from Terrance Tao's Analysis I text (math.unm.edu/~crisp/courses/math401/tao.pdf).
I am unsure whether my proof is correct for proving the forward implication. Here is the work I have done so far:
Assure $a<b$. Suppose for the sake of contradiction we have that $a + 1 \not\leq b$. In that case $a+1 > b$. From the definition of $<$ we have that $a \leq b$ and $a \neq b$. From the definition of $a \leq b$ we get that $b = a +d$ for some positive $d$. Also from the definition of $<$, we get that $b \leq a +1$ and $a +1 \neq b$. From the definition of $a \leq b$ we get that $a + 1 = b + f$ for some positive $f$. We now have that $a + 1 = a + d + f$. By cancellation law we have that $1 = d+ f$. Since $d$ and $f$ were both positive we now have a contradiction. Thus $a+1 \leq b$.
We didn't prove $1 = d+ f$ is a contradiction for positive numbers, so I am feeling hesitant towards this proof. Please suggest some ideas!
You're doing well so far! Now, since $f$ is positive and $1=d+f,$ this means that $d\le 1,$ but $d\ne 1.$ Do you see why? But that means $d<1,$ contradicting positivity of $d.$
Also, I think you mistyped your title.
Added: It's worth noting that the Peano Axioms aren't always formulated in the same way, so it would be helpful to know which version you're dealing with. Also, since you've apparently encountered the notion of addition and inequality (not typically part of the Peano Axioms), it would help to know what you've proved about those so far. It may well be that there's a more straightforward way to proceed, but we'll be hard-pressed to say for sure what it is, unless you can give us more information. Even the approach I suggested above may need to be altered, depending on what you know about positive numbers.