I'm having problem in getting the underlined statement from Gallian text:

Shouldn't the induction hypothesis be taken only on $n?$ But here the author also assumed the case for arbitrary field in induction hypothesis.
I'm having problem in getting the underlined statement from Gallian text:

Shouldn't the induction hypothesis be taken only on $n?$ But here the author also assumed the case for arbitrary field in induction hypothesis.
On
If you want to use the Peano Postulates for the natural numbers as a foundation for your idea of induction, you need $n$ to be there somewhere. However, there are other basic foundations for induction - e.g. in set theory, within which we can build a model of the natural numbers.
Pure induction assumes a statement true for $n$ and shows that it follows for $n+1$ - then you need to establish the base case.
"Strong induction" assumes the truth of the statement for $1,2 \dots n$ and then proves it is true for $n+1$. Provided you have a way of talking about appropriate sets of numbers, this can be recast as follows. Let the proposition you are trying to prove be $P(n)$. Let $Q(n)$ be the proposition that $P(1), P(2) \dots P(n)$ are all true. If we can prove a base case and that $Q(n+1)$ follows from $Q(n)$ we have $Q(n)$ true, and this in turn implies that $P(n)$ is true.
In the case you cite, the induction is on the degree of the polynomial. It is a $Q$-type strong induction (all degrees less than or equal to $n$, where $f(x)$ has degree $n+1$). The hypothesis involves polynomials over "all fields" - but that is not a problem, provided we can deal with all fields at once in the proof. It doesn't impinge on the induction, which isn't on the size or nature of the field.
This is called Strong Induction. Assume for $P_1, \ldots P_n$ to be true and prove $P_{n+1}$ is true as well.
His assumption is for all fields and polynomials of degree less than $f(x)$.