I don't understand what a sound argument is. And what does it mean for a premise to be false? Why does case 3 (A is false, B is true) not apply in the real world?
Here the author says that the first premise is false. But how can $A \lor B$ be false in case 3 when $B$ is true?

Note the very first sentence in the last paragraph: "Viewed as atomic sentences". With this, you're supposed to strip the sentences of their meaning and look at them just as literals (i.e. propositional letters or negations of these).
Thus you can attribute truth values to the propositional letters, (see valuations).
Then the author talks about case 3 which I'm guessing is the valuation $(A,B)\mapsto (F,T)$.
This valuation makes both the premises true and the conclusion true also.
Now the author says that in the real world case 3 can't happen, this means that if you now stop looking at the sentences as propositional letters and give them meaning again, then something impossible happens, namely that Teller has never taught logic (this is somehow known to be false, maybe Teller is the author).
The term false is being used with two different meanings, one of them is the natural language interpretation, the other one is as a valuation.