We prove both parts simultaneously by induction on k.
Base case (k=1). Fix x∈U and i∈{1,…,n}.
(i) By the definition of the partial derivative, ∂xi∂(fg)(x) is the limit as h→0 of hf(x+hei)g(x+hei)−f(x)g(x). We factor the numerator as
f(x+hei)g(x+hei)−f(x)g(x)=[f(x+hei)−f(x)]g(x+hei)+f(x)[g(x+hei)−g(x)].
Since f and g are C1, both partial derivatives ∂xi∂f(x) and ∂xi∂g(x) exist and g is continuous. Dividing by h and taking h→0: the first term tends to ∂xi∂f(x)⋅g(x) (since g(x+hei)→g(x) by continuity of g), and the second term tends to f(x)⋅∂xi∂g(x). Therefore
∂xi∂(fg)(x)=∂xi∂f(x)g(x)+f(x)∂xi∂g(x).
The right-hand side is a sum of products of continuous functions (namely ∂xi∂f, g, f, ∂xi∂g, all continuous by C1), hence continuous by continuity of sums and products of continuous real-valued functions. As i was arbitrary, fg is C1, proving (i).
(ii) With g(x)=0 for all x∈U, the difference quotient for f/g at x in direction ei equals
hg(x+hei)f(x+hei)−g(x)f(x)=h⋅g(x+hei)⋅g(x)[f(x+hei)−f(x)]g(x)−f(x)[g(x+hei)−g(x)].
Dividing the numerator by h and taking h→0: the two fractions tend to ∂xi∂f(x) and ∂xi∂g(x) respectively, and g(x+hei)→g(x)=0 by continuity. Therefore
∂xi∂(f/g)(x)=g(x)2∂xi∂f(x)g(x)−f(x)∂xi∂g(x).
The numerator and denominator g2 are continuous (since g, ∂xi∂f, ∂xi∂g are continuous and g2=0), so ∂xi∂(f/g) is continuous by continuity of sums and products. As i was arbitrary, f/g is C1, proving (ii).
Inductive step. Assume both (i) and (ii) hold for k−1 in place of k; let f,g:U→R be Ck with k≥2.
(i) For each i∈{1,…,n}, the base-case computation (which is a pointwise limit argument valid for any C1 functions) gives ∂xi∂(fg)=∂xi∂f⋅g+f⋅∂xi∂g. Since f and g are Ck, the partial derivatives ∂xi∂f and ∂xi∂g are Ck−1, and f, g themselves are Ck−1. By the inductive hypothesis (i), both products ∂xi∂f⋅g and f⋅∂xi∂g are Ck−1; their sum is also Ck−1. As i was arbitrary, fg is Ck.
(ii) Similarly, the base-case formula ∂xi∂(f/g)=[∂xi∂fg−f∂xi∂g]/g2 holds. The numerator is Ck−1 by (i) applied inductively, and g2 is Ck−1 by (i) inductively, with g2>0 on U. By the inductive hypothesis (ii), the quotient ∂xi∂(f/g) is Ck−1. As i was arbitrary, f/g is Ck.
By induction, both (i) and (ii) hold for all natural numbers k≥1.