It seems to me that you're confused because your Cauchy sequence $(x_m)$ is a sequence of "sequences" (in $\mathbb{R}^n)$. The symbol $\xi_j^m$ denotes the $j$-th component of the point $x_m$ in $R^n$, that is, $x_m:=(\xi_1^m,\xi_2^m,\ldots,\xi_n^m)$. The upper index gives the $m$-th term of the sequence $(x_m)$ and that $m$-th term happens to have $n$ components $\xi_1^m,\xi_2^m,\ldots,\xi_n^m$. Perhaps writing $(x^m)$ for your sequence would be more consistent with the notation chosen, so let's take that convention from now on.
It might help to think of the sequence $(x^s)$ (let's take a different index $s$ not to confuse things) as an infinite matrix where the $m$-th row represents its $m$-th term:
$$
\begin{pmatrix}x^1\\x^2\\x^3\\\vdots\end{pmatrix}=\begin{pmatrix}\xi_1^1&\xi_2^1&\xi_3^1&\cdots&\xi_n^1\\\xi_1^2&\xi_2^2&\xi_3^2&\cdots&\xi_n^2\\\xi_1^3&\xi_2^3&\xi_3^3&\cdots&\xi_n^3\\\vdots&\vdots&\vdots&\ddots&\vdots\end{pmatrix}
$$
a) Are both $\xi_j^m$ and $\xi_j^r$ from the same Cauchy sequence?
Well, $\xi_j^m$ is the $j$-th component of $x^m$ and $ξ_j^r$ is the $j$-th component of $x^r$. $x^m$ and $x^r$ are from the same Cauchy sequence $(x^s)$.
b) For example, let’s say we are using $(1/n)$ as a Cauchy sequence. Let $N = 100$. With $m = 101,n = 200$. Does that mean for the summation index $j = 1$, $\xi_j^m=\xi_{102}$ and $\xi_j^r=\xi_{201}$? And what if $j=n,\xi_j^m=\xi_{101+n}$ and $\xi_j^r=\xi_{200+n}$?
I don't really understand this question. $N$ doesn't appear in the summation. We have
$$
\left(\sum_{j=1}^n(\xi_j^m-\xi_j^r)^2\right)^{1/2}=\left((\xi_1^m-\xi_1^r)^2+(\xi_2^m-\xi_2^r)^2+\cdots+(\xi_n^m-\xi_n^r)^2\right)^{1/2}
$$
(I suppose you forgot to square $\xi_j^m-\xi_j^r$ and that $d$ is the metric issued from the euclidean norm $\|\cdot\|_2$ in $\mathbb{R}^n$).
If for a given $\epsilon$ the integer $N=100$ works and if $m=101$ and $r=200$, then the Cauchy condition says, in particular, since $m,r>N$ (you typed $m,n>N$ in your question but that's a typo, it should be $r$ instead of the fixed dimension $n$ of $\mathbb{R}^n$), that the distance $d(x^m,x^r)$ between the $m$-th and the $r$-th terms of the Cauchy sequence $(x^s)$ is less than $\epsilon$. That is,
\begin{align}
d(x^{101},x^{200})&=\left(\sum_{j=1}^n(\xi_j^{101}-\xi_j^{200})^2\right)^{1/2}\\&=\left((\xi_1^{101}-\xi_1^{200})^2+(\xi_2^{101}-\xi_2^{200})^2+\cdots+(\xi_n^{101}-\xi_n^{200})^2\right)^{1/2}\\&<\epsilon\quad\quad\quad\quad\text{since }101,200>100
\end{align}