$\lim_{n \rightarrow \infty} \frac{1}{5^{n-1}}=\lim_{n \rightarrow \infty} \frac{5}{5^n} = 0$ because as $n$ is increasing, $5^n$ is getting bigger and bigger and so, $5^n$ approaches infinity when $n$ approaches infinity and so, $\frac{1}{5^n}$ approaches zero. It means $\lim_{n \rightarrow \infty} \frac{5}{5^{n}}=0$ which is used here.
You can write given recurrence as:
$v_{n}^2 = v_{n-1}^2 +\frac{1}{5^{n-1}}$ (replace $n$ with $n-1$ )
$v_{n}^2 = v_{n-2}^2 +\frac{1}{5^{n-2}}+\frac{1}{5^{n-1}}$
When expand right hand side like this,at some instance, it becomes,
$v_{n}^2 =v_1^2+\frac{1}{5^1}+ …….+\frac{1}{5^{n-2}}+\frac{1}{5^{n-1}}$
Put $v_1=1$
$v_{n}^2 =1+\frac{1}{5^1}+ …….+\frac{1}{5^{n-2}}+\frac{1}{5^{n-1}}$
Right hand side is sum of GP Series with $n$ terms, So,
$v_{n}^2 =\frac{1\times (1-\frac{1}{5^n})}{1 – \frac{1}{5}}$
$v_{n}^2 =\frac{5}{4}(1-\frac{1}{5^n})$
Since, $\lim_{n \rightarrow \infty} \frac{1}{5^{n}}=0$
So, $\lim_{n \rightarrow \infty}v_{n}^2 = \lim_{n \rightarrow \infty} \frac{5}{4}(1-\frac{1}{5^n}) = \frac{5}{4}(1-0) = \frac{5}{4}$
So, $\lim_{n \rightarrow \infty}v_{n}= \sqrt{\frac{5}{4}}$