Limit of $\left(1-\frac{1}{n^2}\right)^n$
$$\left(1-\frac1{n^2}\right)^n=\left(1-\frac1n\right)^n\left(1+\frac1n\right)^n\xrightarrow[n\to\infty]{}e^{-1}e=1$$
By Bernoulli's inequality
$$ 1 - \frac{1}{n} \leq \left(1 - \frac{1}{n^2}\right)^n \leq 1.$$
Since you asked for an answer not using the limit leading to $1/e$ how about this?
Using the binomial expansion of $\left( 1-\dfrac1{n^2} \right)^n$ you should be able to set up a series in $n$ and then take the limit. This series will start out $$1^n + n \cdot 1^{n-1} \cdot \dfrac{-1}{n^2} + \dfrac{n \cdot (n-1)}2 \cdot1^{n-2} \cdot \left( \dfrac{-1}{n^2}\right) ^2 \ldots$$ and from there you should be able to simplify and show that the limit goes to $1$.