If you look at fig 5.1, It looks like the magnets are only acting across 6.0cm of the wire. So the magnets are only acting on a small portion of the total length of wire.
It's only this 6.0cm portion of wire that experiences the force due to the magnetic field, not the whole length of wire.
As this small portion is now at a nodal point in part 2 ii, it will not be able to oscillate the wire much hence the smaller amplitude.
Hope some of that makes sense, maybe someone else can expand further.