let me try to explain it more clearly:
we wish to show that a non trivial finite tree has at least two vertices of degree one, i.e. from which there emanate only one edge. We will argue by induction on the number n of edges.
By definition, a non trivial tree has at least one edge. So we begin the induction with the case n=1. Then it is clear that both vertices have exactly one edge and we are done.
Now assume the result for all graphs with n-1 edges, and let us consider a graph G with n ≥ 2 edges.
Choose any edge e at all, with endpoints a and b, and collapse e to a point.
This produces a new graph G' with n-1 edges. The two endpoints a and b of e have been combined together into one new vertex called c.
Now let's compute the degree of c. I claim deg(c) = deg(a) + deg(b) -2.
I.e. all edges, except for e, that used to end at either a or b now end at c, so we must add them. (Since G was a tree, only one edge, namely e, ended at both a and b, so a and b had no edges in common except for e.) Since the missing edge e counted as one for both deg(a) and deg(b), we must subtract it twice have our formula. i.e. deg(c) = deg(a)-1 + deg(b)-1.
Now deg(c) cannot be zero, since that would mean that G had only the one edge e.
Consequently, deg(c) ≥ 1, and if deg(c) =1, then either deg(a) or deg(b)=1.
All other vertices of G' have the same degree they had in G, since they fail to meet e.
Now by the inductive hypothesis, there are two vertices say x,y, of G' of degree one. If neither of these is c, we are done, since our collapsing process did not affect them, so the same two vertices on G also had degree one.
If it happens that say x = c, then deg(c) =1, so either a or b had degree 1 in G, say deg(a) = 1. Then in G we had at least two vertices of degree one, namely a and y.
Does this seem clearer?