As the title says, this question is about the final part of Exercise 3.5(a)(ii).
Let $E/K$ be given by a singular Weierstrass equation $f(x,y)$. Suppose that $E$ has a node, and let the tangent lines at the node be $y=\alpha_1+\beta_1$ and $y=\alpha_2+\beta_2$. First we make the assumption that the singular point lies at $(0,0)$, hence we can assume that $\beta_1=\beta_2=0$ and $f(x,y)=y^2+a_1xy-a_2x^2-x^3$. Moreover we are assuming the singular point to be a node, and $\alpha_1\notin K$.
By considering the Taylor expansion of $f(x,y)$ at $(0,0)$, we find that $y^2+a_1xy-a_2x^2=(y-\alpha_1 x)(y-\alpha_2 x)$. Setting $t=y/x$, it follows that $\alpha_1$ and $\alpha_2$ are roots of $t^2+a_1t-a_2\in K[t]$. Moreover $\alpha_1+\alpha_2=-a_1$ and $\alpha_1\alpha_2=-a_2$. Therefore we have that $K(\alpha_1,\alpha_2)=K(\alpha_1)\cong K[t]/(t^2+a_1t-a_2)$, a quadratic extension of $K$.
As the question mentions, by (i) we have $E_{\text{ns}}(K)\subset E_{\text{ns}}(L)\cong L^*$, where $E_{\text{ns}}(L)\rightarrow L^*$ is given by $(x,y)\mapsto \frac{y-\alpha_1 x}{y-\alpha_2 x}$. The goal is to prove that $$E_{\text{ns}}(K)\cong \left\{t\in L^* \mid N_{L/K}(t)=1\right\}.$$ In one direction, if $x,y\in K$, then computing $N(y-\alpha_1 x)$ with respect to the basis $\left\{1,\alpha_1\right\}$ and $N(y-\alpha_2 x)$ with respect to basis $\left\{1,\alpha_2\right\}$, it follows that $N(y-\alpha_1 x)=N(y-\alpha_2 x)$, hence $$N\left(\frac{y-\alpha_1 x}{y-\alpha_2 x}\right)=1.$$ Hence we indeed have a map $E_{\text{ns}}(K)\rightarrow \left\{t\in L^* \mid N_{L/K}(t)=1\right\}.$ Since it is simply the restriction of the map $E_{\text{ns}}(L)\rightarrow L^*$, I suppose that injectivity follows from this. What remains is to prove surjectivity.
I've attempted to show that $$N\left(\frac{y-\alpha_1 x}{y-\alpha_2 x}\right)=1\iff x,y\in K,$$ but it quickly got messy (and I'm not sure if it leads to the correct result). Is my approach reasonable, or is there a nicer way to prove the existence of the bijection $$E_{\text{ns}}(K)\cong \left\{t\in L^* \mid N_{L/K}(t)=1\right\}?$$