An algebraic fraction is just a fraction whose top and bottom are
expressions in
The trick with algebra is that the shared factor is usually hidden until you
The numerator is a difference of two squares, so it factorises as
That is the whole idea: factorise top and bottom, then cancel the common factor. What is left is the simplified fraction.
Watch the top get factorised, then the matching
Sal Khan factorises the top and bottom of rational expressions and cancels the shared factors to write them in lowest terms.