[step:Establish the bijection between characters of $G/N$ and characters of $G$ vanishing on $N$ in the kernel sense]For (5), define
\begin{align*}
L: \{\text{irreducible characters of } G/N\} &\to \{\text{irreducible characters of } G \text{ with } N \leq \ker \chi\}, \\
\tilde{\chi} &\mapsto \chi := \tilde{\chi} \circ \pi.
\end{align*}
**$L$ is well-defined.** By (2), if $\tilde{\chi}$ is an irreducible character of $G/N$ then its lift $\chi = L(\tilde{\chi})$ is an irreducible character of $G$. We must check $N \leq \ker \chi$, where $\ker \chi := \{g \in G : \chi(g) = \chi(1)\}$. For $k \in N$, $\chi(k) = \tilde{\chi}(kN) = \tilde{\chi}(N) = \tilde{\chi}(1_{G/N}) = \chi(1)$, so $k \in \ker \chi$. Hence $N \leq \ker \chi$.
**$L$ is injective.** Suppose $L(\tilde{\chi}_1) = L(\tilde{\chi}_2)$. Then for every $g \in G$, $\tilde{\chi}_1(gN) = \tilde{\chi}_2(gN)$. Since $\pi: G \to G/N$ is surjective, every element of $G/N$ is of the form $gN$ for some $g \in G$, so $\tilde{\chi}_1 = \tilde{\chi}_2$ as functions on $G/N$.
**$L$ is surjective.** Let $\chi$ be an irreducible character of $G$ afforded by an irreducible representation $\rho: G \to \operatorname{GL}(V)$, with $N \leq \ker \chi$. We claim $N \leq \ker \rho$, where $\ker \rho := \rho^{-1}(\{I\}) = \{g : \rho(g) = I\}$.
[claim:If $\chi$ is the character of an irreducible representation $\rho$ of a finite group, then $\ker \chi = \ker \rho$]
[proof]
For any $g \in G$, $\rho(g)$ has finite order (since $G$ is finite), so its eigenvalues are roots of unity, of modulus $1$. The trace $\chi(g) = \sum_i \lambda_i$ is a sum of $\dim V$ unit complex numbers, and $\chi(1) = \dim V$.
We have $|\chi(g)| = |\sum \lambda_i| \leq \sum |\lambda_i| = \dim V = \chi(1)$, with equality if and only if all $\lambda_i$ are equal positive real multiples of a common direction, i.e. all equal. Combined with $|\lambda_i| = 1$, equality requires all eigenvalues $\lambda_i = \zeta$ for a common root of unity $\zeta$.
If $\chi(g) = \chi(1)$ (the condition for $g \in \ker \chi$), this is real and positive, so $\zeta = 1$ and all $\lambda_i = 1$. Hence $\rho(g) = I$ (a diagonalisable operator with all eigenvalues $1$ is the identity), i.e. $g \in \ker \rho$. Conversely, $g \in \ker \rho$ gives $\rho(g) = I$ directly, so $\chi(g) = \operatorname{tr}(I) = \dim V = \chi(1)$ and $g \in \ker \chi$.
Therefore $\ker \chi = \ker \rho$.
[/proof]
[/claim]
By the claim, $N \leq \ker \chi = \ker \rho$. Define
\begin{align*}
\tilde{\rho}: G/N &\to \operatorname{GL}(V), \\
gN &\mapsto \rho(g).
\end{align*}
Well-definedness: if $gN = g'N$, then $g^{-1}g' \in N \leq \ker \rho$, so $\rho(g^{-1}g') = I$, hence $\rho(g) = \rho(g')$, so $\tilde{\rho}(gN) = \tilde{\rho}(g'N)$. Homomorphism: $\tilde{\rho}((gN)(g'N)) = \tilde{\rho}(gg'N) = \rho(gg') = \rho(g)\rho(g') = \tilde{\rho}(gN)\tilde{\rho}(g'N)$. Hence $\tilde{\rho}$ is a representation of $G/N$ on $V$.
The lift of $\tilde{\rho}$ is, by construction, $\rho$ itself. So the character $\tilde{\chi}$ of $\tilde{\rho}$ satisfies $L(\tilde{\chi}) = \chi$. Moreover, the irreducibility of $\rho$ — i.e. of $\chi$ — pulls back to irreducibility of $\tilde{\rho}$ by (2) (or equivalently because $\tilde{\rho}$ has the same image as $\rho$, hence the same invariant subspaces). So $\tilde{\chi}$ is an irreducible character of $G/N$.
This shows every irreducible character of $G$ with $N \leq \ker \chi$ is of the form $L(\tilde{\chi})$, completing surjectivity. Hence $L$ is a bijection.[/step]