I am reading that
$$\frac{\sqrt{x}-1}{\sqrt{x}+1} \leq \exp{\left(-\frac{C}{\sqrt{x}}\right)}.\tag{1}$$
Doing the graph, we can see that $\exp{\left(-\frac{C}{\sqrt{x}}\right)}$ upper bounds $\frac{\sqrt{x}-1}{\sqrt{x}+1}$ when $C$ is small enough. Could you please someone provide some analytic explanation on how we can get $(1)$ and what is the maximum value of $C$ to achieve the upper bound?
Only the case $x > 1$ is interesting, so we can substitute $y = 1/\sqrt x$. Then the inequality becomes $$ \frac{1-y}{1+y} \le e^{-Cy} $$ or $$ \ln \left( \frac{1-y}{1+y} \right) \le -Cy $$ for $0 < y < 1$. Using the Taylor series for the logarithm we get $$ \tag{*} \ln \left( \frac{1-y}{1+y} \right) = -2(y + \frac{y^3}{3} + \frac{y^5}{5} + \ldots) \le -2y. $$ It follows that the desired estimate holds with $\boxed{C=2}$. That is the best possible constant because $$ \lim_{y \to 0} \frac 1y \cdot \ln \left( \frac{1-y}{1+y} \right) = -2 \, . $$
Remark: An alternative method to obtain $(*)$ is $$ \ln \left( \frac{1-y}{1+y} \right) = - \int_0^y \frac{2}{1-t^2} \,dt \le - \int_0^y 2 \, dt = -2y \, . $$