To my understanding you simply cannot use smbus on Windows.
The smbus pypi page points to this linux kernel site [^1] as homepage, which then refers to a git repository with a subfolder py-smbus/.
Your linked install log tells us pip calls the package's setup.py, which tries to build a binary extension, which does not work on windows since the referenced C extension smbusmodule.c requires linux headers rsp. linux-only libraries (i2c).
Why did you want to install smbus on Windows in the first place? Are you sure you have the right package name? Or is it a dependency of some other library/tool you want to use? smbus itself seems to be something very low-level and barely documented, and has received very few commits for almost a decade.
[^1]: which BTW is marked as obsolete