shouldn't it be tan theta or is it small angle approx
Yes, it should be tan θ.
I disagree with that equation given in the sample answer. The result is correct, but the equation is wrong.
Here is the free body diagram of the car. The car is subjected to just two forces, they are W the force of gravity and F
N the normal force from the road. The net force is unbalanced, and this creates F
c the centripetal force that keeps the car in circular motion, even when the road has no sideways friction.