The correct option is D 1√2
Let u1 and v1 be the initial and final velocities of ball 1 and u2 and v2 be the similar quantities for ball 2. Here,m u2=0 and v1=0.
∴ initial KE,Ki=12mu21+12mu22=12mu21
and final KE,Kf=12mv21+12mv22=12mv22
Loss of KE,△Ki−Kf=12mu21−12mv22
According to question,
12(12mv21)=12mu21−12mv22
(∵ half of its KE is lost by impact)
or u21=2v22 or v2=u1√2
∴ Coefficient of restitution,
e=∣∣∣v2−v1u1−u2∣∣∣=v2u1=1√2.