An easy way to do this is to note that since distance is invariant under rotations, without loss of generality, we may assume that $f(a)=f(b).$ And now, since $\sqrt{1-f'(x)}\ge 0$ on $[a,b]$, the function in $C^1([a,b])$ that minimizes the integral coincides with the function $f$ that minimizes the integrand, and clearly, this happens when $f'(x)=0$ for all $x\in [a,b].$ That is, when $f$ is constant on $[a,b].$ Then, $f(x)=f(a)$ and the result follows.
If you want to do this without the wlog assumption, then argue as follows:
Let $\epsilon>0,\ f\in C^1([a,b])$ and choose a partition $P=\{a,x_1,\cdots,x_{n-2},b\}$.
The length of the polygonal path obtained by joining the points
$(x_i,f(x_i))$ is $\sum_i \sqrt{(\Delta x_i)^2+(\Delta y_i)^2}$ and this is clearly $\ge (b-a)^2+(f(b)-f(a))^2$. (You can make this precise by using an induction argument on $n$.)
And this is true for $\textit{any}$ partition $P$.
But the above sum is also $\sum_i\sqrt{1+\frac{\Delta y_i}{\Delta x_i}}\Delta x_i $ and now, upon applying the MVT, we see that what we have is a Riemann sum for $\sqrt{1+f'(x)}$.
To finish, choose $P$ such that $\left |\int^b_a\sqrt{1+f'(x)}dx- \sum_i\sqrt{1+f'(c_i)}\Delta x_i \right |<\epsilon $. (The $c_i$ are the numbers $x_i<c_i<x_{i-1}$ obtained from the MVT). Then,
$(b-a)^2+(f(b)-f(a))^2\le \sum_i\sqrt{1+f'(c)}\Delta x_i<\int^b_a\sqrt{1+f'(x)}+\epsilon.$
Since $\epsilon$ is arbitrary, the result follows.
For a slick way to do this, use a variational argument: assuming a minimum $f$ exists, consider $f+t\phi$ where $t$ is a real parameter and $\phi$ is arbitrary $C^1([a,b])$.
Subsitute it into the integral:
$l(t)=\int_a^b \sqrt{1+(f'+t\phi')^2}dx$.
Since $f$ minimizes this integral, the derivative of $l$ at $t=0$ must be equal to zero. Then,
$0=l'(0)= \int_a^b \dfrac{f'\phi'}{\sqrt{1+(f')^2}}dx$.
After an integration by parts, we get
$\dfrac{f'}{\sqrt{1+(f')^2}} = c$ for some constant $c\in \mathbb R,$ from which it follows that $f'=c$. And this means, of course, that the graph of $f$ is a straight line connecting $(a,f(a))$ and $(b,f(b)).$ The desired inequality follows.