You are correct in that CB = DC = 5 ......so....let's carry this a little further....
Note that the four interior angles must sum to 360°
This means that angles D and B are supplementary (since A and C = 90° )
This also means that the cos B = -cos D (since D) is > 90°
Put another way..... -cosB = cos D
Since AC forms two triangles we can use the Law of Cosines twice and we have that
AC^2 = 1^2 + 5^2 - 2 ( 1)(5) (-cos B) (1)
AC^2 = 5^2 + 7^2 - 2 ( 5) (7) (cos B) (2)
Which implies that
1^2 + 5^2 + 10cos B = 5^2 + 7^2 - 70 cos B
26 + 10cos B = 74 - 70 cos B
80cos B = 48
cos B = 48 / 80 = 3/5
So using (2)
AC^2 = 74 - 70 (3/5)
AC^2 = 32
AC = sqrt (32) = 4sqrt (2) ≈ 5.66