I don't think the proof as it is stated is completed. But it would be if the following trivial observation were made.
For any finite set $A$ then $|A| = \sum\limits_{x\in A} 1=\sum\limits_{x\in U} \begin{cases}1&x\in A\\ 0 &x\not \in A\end{cases}$, for some universal set $U$.
Thus the RHS is $|\cup_{1\le i \le n}A_n| =\sum\limits_{x\in A} 1=\sum\limits_{x\in U}\begin{cases}1&x\in \cup_{1\le i \le n}A_n\\ 0 &x\not \in \cup_{1\le i \le n}A_n\end{cases}$ and the LHS is
$\sum\limits_{x\in U}[\sum\limits_{1\le i \le n}\begin{cases}1&x\in A_i\\ 0 &x\not \in A_i\end{cases}-\sum\limits_{1 \le i_1 \le i_2 \le n}\begin{cases}1&x\in A_{i_1}\cup A_{i_2}\\ 0 &x\not \in A_{i_1}\cup A_{i_2}\end{cases}+ ......]$
Then to prove the statement it would be sufficiennt to prove that for each $x \in \cup A_i$ that $[\sum\limits_{1\le i \le n}\begin{cases}1&x\in A_i\\ 0 &x\not \in A_i\end{cases}-\sum\limits_{1 \le i_1 \le i_2 \le n}\begin{cases}1&x\in A_{i_1}\cup A_{i_2}\\ 0 &x\not \in A_{i_1}\cup A_{i_2}\end{cases}+ ......] = 1$ and for each $x \not \in \cup A_i$ that $[\sum\limits_{1\le i \le n}\begin{cases}1&x\in A_i\\ 0 &x\not \in A_i\end{cases}-\sum\limits_{1 \le i_1 \le i_2 \le n}\begin{cases}1&x\in A_{i_1}\cup A_{i_2}\\ 0 &x\not \in A_{i_1}\cup A_{i_2}\end{cases}+ ......]=0$.
And that is precisely what the proof did do.