Clarification for proof of $\mathbb{Q}$ being dense in $\mathbb{R}$ (Rudin's PMA)
Solution 1:
Your confusion seems to arise because the Archimedes principle is stated in terms of $x,y$, and you have different $x,y$ in (b). Restate the Archimedean principle as:
(a) If $u,v$ are real numbers, with $u>0$ then there is a positive integer $k$ such that: $ku>v$.
(All I've done is change the variables, I hope.)
Now, $1$ is a real number, $y-x$ is a real number, and you've proven that $y-x>0$. So we know from (a) that if $u:=y-x$ and $v:=1$ that there is a positive integer, which we will call $n$, such that $(y-x)n>1$.
Similarly, since we know that $nx$ is a real number, and we know that $1$ is a real number and $1>0$, that from (a), setting $u:=1$ and $v:=nx$, that there is a positive integer we'll call $m_1$ such that $m_1\cdot 1 > nx$.
Finally, set $u:=1>0$ and $v:=-nx$ to show that there must be an $m_2$ so that $m_2\cdot 1>-nx$.
The last step is subtler, and doesn't use (a). Since $m_2>-nx$, $-m_2<nx$. So we know that $-m_2<m_1$.
Now, you need a property of the integers: If a non-empty set of integers has a lower bound, then it has a least element.
Take the set $S=\{m\in\mathbb Z: m> nx\}$. We know that $m_1\in S$, so $S$ is non-empty, and we know that $-m_2$ is a lower bound for $S$. So there is a least element $m\in S$. Then $m-1\notin S$, and therefore $m> nx$ and $m-1\leq nx$. So $m-1\leq nx< m$.
Solution 2:
In Bartle and Sherberts "Introduction to Real Analysis" this result is proved with preliminary corollaries (you'll note that are in some way results that Rudin also uses).
And using these results it's proven the following:
Hopefully with this approach now you can understand Rudins proof.