Olá Antônio,
Inline Schema quer dizer que o XSD esta junto com o arquivo XML logo na primeira linha descrevendo a formatação da área de dados.
Se o seu XML não tiver um schema inline ele vai dar pau!
Segue um exemplo simples para vc testar:
<?xml version='1.0' encoding='UTF-8'?>
<data xmlns:xsd='http://www.w3.org/2001/XMLSchema' xmlns:xsi='http://www.w3.org/2001/XMLSchema-instance'>
<xsd:schema>
<xsd:simpleType name='NameType'>
<xsd:restriction base='xsd:string'>
<xsd:minLength value='0'/>
<xsd:maxLength value='50'/>
</xsd:restriction>
</xsd:simpleType>
<xsd:element name='Name' type='NameType' nillable='true'/>
<xsd:simpleType name='FamilyType'>
<xsd:restriction base='xsd:string'>
<xsd:minLength value='0'/>
<xsd:maxLength value='50'/>
</xsd:restriction>
</xsd:simpleType>
<xsd:element name='Family' type='FamilyType' nillable='true'/>
<xsd:element name='row'>
<xsd:complexType>
<xsd:sequence>
<xsd:element ref='Name'/>
<xsd:element ref='Family'/>
</xsd:sequence>
</xsd:complexType>
</xsd:element>
<xsd:element name='data'>
<xsd:complexType>
<xsd:sequence>
<xsd:element ref='row' maxOccurs='unbounded'/>
</xsd:sequence>
</xsd:complexType>
</xsd:element>
</xsd:schema>
<!-- data follows -->
<row><Name>Fred</Name><Family>Jones</Family></row>
</data>
Abraço
