Definition of contraction: A function $f:\mathbb{R}\to\mathbb{R}$ is called a contraction of $\mathbb{R}$ if and only if there exists a constant $r\in[0,1)$ such that for all $x$ and $x'$ in $\mathbb{R}$ we have
$$|f(x)-f(x')| \leq r|x-x'|.$$
Proof: The function $f$ is differentiable on $\mathbb{R}$. Hence, for any $x\in\mathbb{R}$, $f'(x)$ exists and we will denote it as $r$. We are given that $|r|<1$ since $||f'||_{sup} < 1$. Then,
$$\lim_{h\to0}\frac{f(x+h)-f(x)}{h}=r$$ $$f(x+h)-f(x)=rh$$
Letting $x' = x+h$, we get
$$f(x')-f(x)=r(x-x')$$ $$\implies |f(x')-f(x)|=r|(x-x')|$$
and $f$ must be a contraction of $\mathbb{R}$.