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Given: Three unit squares and two line segments connecting two pairs of vertices are shown.
Asked: What is the area of triangle ABC?

Assuming origin (0,0) at point A.

Equation of line AC :
y = - x/2

Equation of line BC:
y = -2 + 2x

Point C:
y = -x/2 = -2 + 2x
2.5x = 2
x = .8
y = -.4

Area of triangle ABC = 1/2 * 1 * .4 = .2 = 1/5

IMO B
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IanStewart In the highlighted part below how do we know that angle ACB = 90 degree? Because the for the two triangles to be similar (larger triangle and triangle ABC) we need to know that at least two angles are equal, since angle A is common to both triangles then which one is the other equal angle?

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There are a few ways to solve - for example, if you look at the long line containing BC, it rises 2 units when we go across 1 unit. The line containing AC falls 1 unit when we go across 2 units, the perfect reverse of what BC does. That's what it means for two lines to be perpendicular (in coordinate geometry terms, the slope of BC is 2, and the slope of AC is -1/2, which are negative reciprocals). So ABC is a right triangle, with a right angle at C.

But if we look at the largest triangle that contains ABC, the triangle using the entire horizontal line at the top of the picture, and the vertical line at the far right of the picture, that triangle also has a 90 degree angle and has the same angle at A that ABC has, so it shares two angles with ABC, and therefore is similar to triangle ABC. Since the legs of this large triangle are clearly in a 2 to 1 ratio, so are the legs of ABC.

So if we just call the two legs of ABC 'b' and '2b', the area of ABC is (b)(2b)/2 = b^2, which is what we want to find. And since the hypotenuse of ABC is 1, we can solve for b^2 using Pythagoras:

b^2 + (2b)^2 = 1
5b^2 = 1
b^2 = 1/5

Another approach which is longer, but which is convenient and flexible: you can just put everything in an xy-plane, with the point (0, 0) at the bottom left of the diagram. Then by finding the equations of each line, you can solve for their intersection point, and from there it's easy to find the area of ABC.
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IanStewart In the highlighted part below how do we know that angle ACB = 90 degree?

If you read the paragraph above the one you highlighted, I explain there how we can tell that the two lines meeting at C are perpendicular (and so make a 90 degree angle where they meet).
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