Let $f$ be a function such that $f: \mathbb{R}^* \rightarrow \mathbb{R}^+$ and $f(x) = x^2$. Now, we know that the kernel of the function is $\{-1, 1\}$ because: \begin{align*} f(x) &= 1 \\ x^2 &= 1 \\ x &= \pm 1 \end{align*} Now, we know that $\mathbb{R}^+$ is the image of the function because $x^2$ only gives out positive numbers. So, according to the first isomorphism theorem, if $f: R^* \rightarrow R^+$ is a homomorphism, then $R^*/ker(f) \cong R^+$.
But, "we know that $\mathbb{R}^+$ is the image of the function because $x^2$ only gives out positive numbers" only says that image of f is a subset of $R^*$. How do I approach this problem?
You just need to show that $f$ is a homomorphism. But $f(ab)=(ab)^2=a^2b^2=f(a)f(b)$.
The image of $f$ is indeed $\Bbb R^+$, as required, as every positive real number has a nonzero real square root (actually it has two, a positive one and a negative one.)
Note that $f$ is $2-1$, as the kernel has order $2$.