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\theoremstyle{plain}
\newtheorem{thm}{Theorem}[section]
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\theoremstyle{definition}
\newtheorem{exc}{Exercise}[section]
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\documentclass[12pt,a4paper,oneside]{report}
\pagestyle{myheadings}
\usepackage{amsmath,amssymb,amscd,amsthm,amstext}
\begin{document}
\title{Real Analysis Notes.}
\author{The Doctor.}
\date{\today}
\maketitle
\begin{exc}
Let $A=\{1,2,3\}$ and let $B=\{3,4,5\}$ Then $A\cupB=\{1,2,3,4\}$ and $a\capB=\{3\}.$
\end{exc}
\end{document}