Look at a "smaller" situation first.
Suppose you have a matrix B such that B^4 = 0
With real numbers, if x is small enough, it can be shown that
(1-x)^(-1) = 1 -x + x^2 - x^3 + x^4 -
that is,
(1-x)(1 -x + x^2 - x^3 + x^4 -...) = 1
and this expansion goes on "forever" (it is an infinite series, if you've had calculus and know that term)
At least formally, let's try the same thing with our matrix (B)
Start with
(I - B)^(-1) = I - B + B^2 - B^3 + B^4 - B^5 +...
This may look bad ("how do I work with an infinite series when the terms are matrices?") but remember, for our matrix B, B^4 = 0: that means all higher powers of B are zero also, so our candidate for (I-B)^(-1) is
(I - B)^(-1) = I - B + B^2 - B^3
just a finite sum.
Now (this is for you) work through this product:
(I-B)(I-B+B^2-B^3)You should end up with the product equal to I - that means the inverse of (I-B) is given by (I-B)^(-1).
If this work makes sense, ask yourself: what is different about this small example and the question I asked?