This line:
set 5 10
makes positional parameters $1=5
and makes $2=10
This line:
n=2
Sets shell variable n to value 2
Then this line:
eval echo \$$n
is effectively this:
echo $2
prints $2
which is 10
Finally this line:
echo `eval echo \$$n`
is same as (due to back ticks):
eval echo $$n
which is effectively this:
echo $$n
Prints $$
(current shell PID) and literal n
hence prints
10268n