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When he can, Arjac must direct his attacks against an IC/MC.

Arjac is not an independant character himself. He is part of the squad he is assigned to.

If Arjac is within 2 inches of a model in base to base with an IC/MC, can he than direct his attacks, despite not being in btb himself, getting the rerolls his rules allow?

If he can possible hit an IC at all he must do so, and will get his rerolls.

Note that he does not have to allocate his attacks against MCs.

IC's can be attacked by any model that is engaged with them. Look for the sentence that starts with "Be aware.." in the section on Independent Characters & Assaults.

However IF he is in btb with a non-IC unit, he *cannot* allocate attacks on the IC