The text says that Runge's Phenomenon is observed when the polynomial overshoots at samples. In the figure, the polynomial is supposed to be $C^2$ i.e. continuous and smooth so that it can be differentiated at all points, however, at around x=5, there is a sharp change in the polynomial curve, where it won't be differentiable and thus not $C^2$ (since the limit of a function doesn't exist at points where the slope changes abruptly)
The text says that Runge's Phenomenon is observed when the polynomial overshoots at samples. In the figure, the polynomial is supposed to be $C^2$ i.e. continuous and smooth so that it can be differentiated at all points, however, at around x=5, there is a sharp change in the polynomial curve, where it won't be differentiable and thus not $C^2$ (since the limit of a function doesn't exist at points where the slope changes abruptly)