$\frac 1n$ is not a Cauchy sequence in $\mathbb N$ as $\frac 1n \not \in \mathbb N$ for any $n \ne 1$.
To be a cauchy sequence OF NATURAL NUMBERS there must come a point where all the terms are less than $1$ apart. As all the terms ARE natural numbers[$*$] that means there comes a point where all the terms are equal. In other words the sequence is "constant for all but finite terms". And such sequences do converge to the constant.
More formally. If $\{m_i\} \subset \mathbb N$ is causchy so that for any $\epsilon > 0$ then there is an $M$ so that $n,p > M \implies |m_n - m_p| < \epsilon$. Then if $\epsilon < 1$ then there is some $M$ so that $n,p > M \implies |m_n - m_p | < 1$ which means $m_n = m_p$ for ALL $n,p> M$. And $m_n = m_p = c$ for some $c \in \mathbb N$.
SO $m_i\to c$. Yep. It's complete.
[$*$] That's what "being a sequence in $X$" means. It means all the terms are elements of $X$. So $\{\frac 1n\}$ must certainly is NOT a sequence "in $\mathbb N$".