The question is right.
You are making an error when you say \pi^{-1}(\pi(x_1),\pi(x_2),\dots,\pi(x_k))=(\pi^{-1}\pi(x_1),\pi^{-1}\pi(x_2),\dots,\pi^{-1}\pi(x_k)).
Try an example. \pi=(1 2 3),\sigma=(x_1,x_2,x_3,x_4,x_5)=(8 2 4 3 5), \pi^{-1}=(3 2 1).