"From this it is clear that ..." - even if it was true up to this point, $t$ and $s$ could be fractions with denominator $2$ and $m=2t+1$, $n=2s+1$ would still be integers.
Instead, let's assume $m,n$ are odd and consider the quadratic formula,
$$ x=\frac{-m\pm \sqrt{m^2-4n}}{2}$$
If one root is rational then $m^2-4n$ is a square number, $k^2$, and in fact both roots are rational. We know $m$ is odd and $4n$ is even, so $m^2-4n=k^2$ is odd and thus $k$ is odd (an even number squared is even, but an odd number squared is odd).
Consider the difference between two arbitrary odd square numbers, $(2a+1)^2$ and $(2b+1)^2$. Is this difference even or odd? What contradiction does this give us?
EDIT:
The difference between two odd square numbers, $(2a+1)^2$ and $(2b+1)^2$, is:
$$ (2b+1)^2-(2a+1)^2\\ =4b^2+4b+1-(4a^2+4a+1)\\ = 4(b^2+b-(a^2+a))$$
$b^2$ is the same parity as $b$ so $b^2+b$ is even. Identically, $a^2+a$ is even and $b^2+b-(a^2+a)$, the difference of two even numbers, is even.
Thus, the difference between any two odd square numbers, $4(b^2+b-(a^2+a))$, is always a multiple of $8$ (it is $4$ times some even number).
Back to our values $m,n$, we know that $m^2-4n=k^2$, where $m,k$ are odd integers - that is, the difference between two odd square numbers is $4n$ (by rearranging, $m^2-k^2=4n$). We have just proved that $m^2-k^2$ must be a multiple of $8$ i.e. that $4n$ is a multiple of $8$, which means that $n$ is even.
But we assumed that $n$ is odd, so this is a contradiction. Hence, $m$ and $n$ cannot both be odd.