[guided]The point of this step is to convert the hypothesis on the continuous derivative into the exact discrete hypothesis needed for the exponential sum. The relevant discrete quantities are not the values $f'(n)$, but the increments
\begin{align*}
\Delta_n:=f(n+1)-f(n)\qquad(M\le n<N).
\end{align*}
Since $f\in C^1([a,b];\mathbb R)$, the fundamental theorem of calculus applies on every interval $[n,n+1]\subset [a,b]$, and gives
\begin{align*}
\Delta_n=\int_n^{n+1}f'(x)\,d\mathcal L^1(x).
\end{align*}
We next use the nonresonance condition. The set $f'([a,b])$ is an interval because $f'$ is continuous and $[a,b]$ is connected. It is also monotone as a parametrized image, but connectedness is what prevents jumping across excluded integer neighborhoods. The condition
\begin{align*}
\|f'(x)\|_{\mathbb R/\mathbb Z}\ge \lambda
\end{align*}
means that $f'(x)$ never enters any open interval $(m-\lambda,m+\lambda)$ around an integer $m\in\mathbb Z$. Since $0<\lambda\le 1/2$, the complement of these forbidden intervals is the union of closed intervals
\begin{align*}
[m+\lambda,m+1-\lambda]\qquad(m\in\mathbb Z).
\end{align*}
A connected interval contained in this union must lie in one such component. Thus there is an integer $r\in\mathbb Z$ such that, after possibly replacing $f$ by $-f$, we have
\begin{align*}
f'([a,b])\subset [r+\lambda,r+1-\lambda].
\end{align*}
Replacing $f$ by $-f$ changes each term $e(f(n))$ to $e(-f(n))=\overline{e(f(n))}$, so the absolute value of the whole sum is unchanged.
Now each $\Delta_n$ is the average of $f'$ over $[n,n+1]$ with respect to $\mathcal L^1$. Since all values of $f'$ on that interval lie in $[r+\lambda,r+1-\lambda]$, the average also lies in the same interval:
\begin{align*}
\Delta_n\in [r+\lambda,r+1-\lambda].
\end{align*}
Finally, we verify monotonicity of the discrete averages explicitly. Suppose first that $f'$ is nondecreasing and let $M\le m<n<N$. For every $x\in[m,m+1]$ we have $x\le x+n-m\in[n,n+1]$, and therefore
\begin{align*}
f'(x)\le f'(x+n-m).
\end{align*}
Integrating this pointwise inequality over $[m,m+1]$ with respect to $\mathcal L^1$ and then using the translation change of variables $y=x+n-m$, whose Jacobian is $1$, gives
\begin{align*}
\Delta_m=\int_m^{m+1}f'(x)\,d\mathcal L^1(x)\le \int_m^{m+1}f'(x+n-m)\,d\mathcal L^1(x)=\int_n^{n+1}f'(y)\,d\mathcal L^1(y)=\Delta_n.
\end{align*}
Thus $(\Delta_n)_{M\le n<N}$ is nondecreasing in this case. If $f'$ is nonincreasing, then for the same $m,n$ and $x\in[m,m+1]$ we have $f'(x)\ge f'(x+n-m)$, and the identical translation calculation gives $\Delta_m\ge\Delta_n$. Thus $(\Delta_n)_{M\le n<N}$ is nonincreasing in that case. In both cases the first-difference sequence is monotone.[/guided]