Selection sort uses approximately N^2/2 comparisons and N exchanges.
For an exact analysis, selection sort uses
N-1 + N-2 + N-3 + .....1 comparisons to sort an array of length N.
Thus total number of comparisons = (N-1)*(N)/2 = N^2/2 - N/2 which is approximately equal to N^2/2 . Which is what they have written.
In your example when N is 2, comparisons = 1*2/2 = 1. And the number of exchanges is = 1. (N-1)