We both agree on the limit as ##n## goes to infinity, namely the rocket equation, but we also have to decide, as the original question asks, if the final speed of the the rocket when ejecting all fuel at once is higher, lower or equal, compared to ejecting it continuously, and herein lies the difference between the models.
With a simple model (yours, and my first one) where after each ejection the rocket gets a speed change opposite the fuel such that the fuel always has speed ##v_e## relative to the instantaneous rest frame, then you always get ##v_f > v_e## for ##n = 1## (and ##m_f > 0##) which means the equation goes towards the rocket equation from above and this also means this model supports that you get higher final speed if you eject all mass at once, rather than continuously, which is contrary to what is asked to show. As a numeric example, if we take your table entry for ##n = 1## and ##m_r/m_f = 0.1## we get ##v_f = 10 v_e##, which is to say the relative speed between the rocket and the fuel is ##11 v_e##. My question now is, if we end up with ##11 v_e## does this process really model the same rocket as in the continuous case?
In order to get closer to model the same process I then tried to put in the constrain that after each fuel ejection, the relative speed between the rocket and the ejected fuel chunk has to be ##v_e##. This results in a similar equation but now the rocket equation limit is approached from below. This also means that this model affirms the original question. So which one is correct?
I am now not so sure that either of the two above models are a particularly good fit for a discrete model of a continuous rocket. Going further, one could perhaps try to require that the total work in the single-chunk, multi-chunk and continuous case is all the same and proportional to the fuel mass. My immediate problem with this approach is that it quickly becomes fairly messy, and its also not clear to me what the total work in the continuous case should be.