did the teacher go wrong in making the square in the circle?! that’s what the question is asking pls help

Given two arcs, we follow the steps:
1) Label the intersection point of each pair of arcs as U and V:
2) Next, we need to construct the perpendicular bisector of the segment UV and label the intersection points to the circumference as P and Q:
3) Finally, we draw four line segments connecting the successive points on the circumference of the circle:
Looking at the steps given in the problem, the answer is:
The teacher makes a mistake in Step 2