When you have a hunch that a series might diverge, you should apply the test for divergence: If you take the limit of the sequence and it doesn't equal to 0, then the series diverge.
((n - 1)^2)/(1 + n^2) = (n^2 - 2n + 1)/(1 + n^2)
divide the numerator and denominator by n^2 :
((n^2 - 2n + 1)/n^2)/((1 + n^2)/n^2)
= (1 - 2/n + 1/n^2)/(1/n^2 + 1)
Taking the limit as n is approaching infinity, you get:
(1 - 0 + 0)/(0 + 1) = 1/1 = 1
Since the limit of the sequence is not zero, we definitely know the series doesn't converge.
Remark: You probably know this, but you can't apply this sort of test for convergence. If the limit of the sequence is 0, it doesn't mean that the sequence diverges. e.g., the series for 1/n: the sequence 1/n goes to zero as n approaches infinity, but we know that the infinite series for 1/n diverges.