For eg if X is +0.5, which is which is X>-1 then so the output will be 1<0.5, hence the equation will not be true for all values of X>-1. Is my interpretation correct?
I'm pretty sure Durgesh has already explained his answer convincingly, but just in case, I'll present a different problem:
If x is positive, what must be true?
I) x > 10
II) x > -10
III) x > 0
Of course, III) says exactly 'x is positive', so III) must be true. But if x is positive, x is obviously larger than -10. II) must also be true. I) doesn't need to be true; x could be 4, or 7, for example.
The same situation applies with the question that began this thread. We know that either -1 < x < 0, or x > 1. What must be true? Well, "x > 1" does not
need to be true. We know that x might be -0.5, for example. On the other hand, "x > -1" absolutely must be true: if x satisfies the inequality x/|x| < x, then x is certainly larger than -1. If we had been asked whether "x > -1,000,000" must be true, the answer would also be yes. The question did not ask "What is the solution set of "x/|x| < x"; nor did it ask "For which values of x is x/|x| < x true?".