According to Diestel (page 4):
"If $G' \subseteq G$ and $G'$ contains all the edges $xy \in E$ with $x, y \in V'$, then $G'$ is an induced subgraph of $G$"
According to Wikipedia
"induced cycle is a cycle that is an induced subgraph of $G$; induced cycles are also called cordless cycles "
Does the definition by Diestel imply induced cycles are chordless?
In this graph, does induced subgraph $G[\{a,b,c,d\}]$ include edge
$ac$?
Both $a$ and $c$ are in $V'$.
Best Answer
Shortly, it does.
It is easier to think of induced subgraphs in terms of vertices: you take any $V' \subseteq V$ and take all the edges from $E$ that make sense, that is, both their ends are in $V'$. In fact, $(a,c) \in E$ and $a,c \in V'$ implies $(a,c) \in E'$.
I guess your confusion might be caused by the term "cycle" which has here two similar meanings:
So a cycle-1 is chordless if and only if it is an induced cycle-2.
I hope it explained something ;-)