I hope it will be relatively easy to follow.
two_to_one = lambda g: (lambda y: g(y,y))
two_to_one is a function, with an input of a function (g: a function with an input of two parameters (as seen in g(y,y)), and output of a function (with 1 input y, and output of g(y,y)). Meaning it is a function of functions. So when giving two_to_one a two parameter function g, you get back a function, that takes 1 number and outputs g(y,y).
e.g:
two_to_one(lambda x,y:x+y)(3)
6
We gave two_to_one a function that gets two numbers and output their sum, lambda x,y:x+y, and we got back a function that takes 1 number and output its sum with itself two_to_one(lambda x,y:x+y). So with an input of 3 it outputs 6.
Second line is similiar:
one_to_two = lambda f: (lambda x, y: f(x) + f(y))
Take a function f (of 1 parameter - due to f(x)), and give back a function, that gets two parameters (numbers probably) x,y and outputs f(x) + f(y).
Now, for the 13 output - working from inner to outer:
h = one_to_two(two_to_one(lambda x, y: x*y))
lambda x, y: x*y two parameter input - output of multiplication. This is the input of two_to_one so (remember what was written earlier) two_to_one(lambda x, y: x*y) is a function that gets 1 number, and returns it squared. And finally, feeding this function to one_to_two gives a function that gets two numbers (those x,y frim before) and returns their sum of squares.
In total h(3,2) gives 3**2+2**2=13.