You must first prove 2 cases:
(1) $A \cap (B \cup C) \subset (A \cap B) \cup (A \cap C)$
(2) $(A \cap B) \cup (A \cap C) \subset A \cap (B \cup C)$
Note that in mathematics we use the following symbols:
$\cap=$ AND = $\land$
$\cup=$ OR = $\lor$
Case 1: $A \cap (B \cup C) \subset (A \cap B) \cup (A \cap C)$
Let $x \in A \cap (B \cup C) \implies x \in A \land x \in (B \cup C)$
$\implies x \in A \land \{ x \in B \lor x \in C \}$
$\implies \{ x \in A \land x \in B \} \lor\{ x \in A \land x \in C \} $
$\implies x \in (A \cap B) \lor x \in (A \cap C)$
$\implies x \in (A \cap B) \cup (A \cap C)$
$\therefore x \in A \cap (B \cup C) \implies x \in (A \cap B) \cup (A \cap C)$
$\therefore A \cap (B \cup C) \subset (A \cap B) \cup (A \cap C)$
Case 2: $(A \cap B) \cup (A \cap C) \subset A \cap (B \cup C)$
Let $x \in (A \cap B) \cup (A \cap C) \implies x \in (A \cap B) \lor x \in (A \cap C)$
$\implies \{x \in A \land x \in B \} \lor \{ x \in A \land x \in C \}$
$\implies x \in A \land \{ x \in B \lor x \in C\}$
$\implies x \in A \land \{B \cup C \}$
$\implies x \in A \cap (B \cup C)$
$\therefore x \in (A \cap B) \cup (A \cap C) \implies x \in A \cap (B \cup C)$
$\therefore (A \cap B) \cup (A \cap C) \subset A \cap (B \cup C)$
$\therefore A \cup (B \cap C) = (A \cup B) \cap (A \cup C)$
Now let's get an $\epsilon > 1$ such that
$(k-\frac{\epsilon_k}{\epsilon},k+\frac{\epsilon_k}{\epsilon}) \subset
\big((k - \epsilon_k, k + \epsilon_k) \cap [a,b] \big)$. That
$\epsilon$ clearly exists
Does it though? What about if $k=a$?
Best Answer
The proof is wrong: you just conclude that either $N'_\epsilon(x)\cap A\ne\emptyset$ or $N'_\epsilon(x)\cap B\ne\emptyset$, but this doesn't show that either $x\in A'$ or $x\in B'$.
Indeed, showing that $x\in A'\cup B'$ requires proving that,
which is different from what you proved.
Suppose $x\in (A\cup B)'$, but $x\notin A'$. Let's show that necessarily $x\in B'$. Fix $\epsilon_0>0$ such that $N'_{\epsilon_0}(x)\cap A=\emptyset$.
Hence, for every $0<\delta<\epsilon_0$, $N'_\delta(x)\cap A=\emptyset$. From the assumption $x\in(A\cup B)'$, we deduce that $N'_\delta(x)\cap(A\cup B)\ne\emptyset$, so $N'_\delta(x)\cap B\ne\emptyset$.
Let $\epsilon>0$; take $\delta<\min\{\epsilon,\epsilon_0\}$. Then $$ \emptyset\ne N'_\delta(x)\cap B\subseteq N'_\epsilon(x)\cap B $$ This proves $x\in B'$.