Over 100 children at the school are susceptible to virus.
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9998/10000 is the chance to not get SSPE for a single person.
For two persons to not get it (assuming both are infected): 9998/10000 * 9998/1000
For three persons: 9998/10000 * 9998/10000 * 9998/10000
And so on. That means, that the chance for n persons to not get it (no one of them) is (9998/10000)^n
That’s where the power comes into play.
The other conversion (times 100) is just how percentages work: per cent = per one hundred. So 0.98 = 98/100 = 98%