This one is a little more tricky. The prompt tells us that the password is located in the only human-readable file in the inhere directory. There are several files, so examining each is possible, but a little clunky.
The first step after logging in is to cd into the inhere directory, and list the contents through ls. This will return a total of 11 files, but we know from the prompt that only one of these is human-readable (and is our password for the next level!).
As there are a few ways to solve this, I'm simply going to explain how I solved it - feel free to play around with it and see how many different ways you can figure it out!
Utilizing the file -- * command, I was able to get the terminal to list the file's datatypes, including one file that was "ASCII text." Then, utilizing what we learned from Bandit1, I used cat to access that file and got the password.
Good luck!
Check out this article to learn more about the "file" command.