The correct option is B f(x) is continuous but not differentiable at x=1
Since, x2−1>0 ,if |x|>1
⇒f(x)=⎧⎨⎩1; x<−1x; −1≤x≤11;x>1
Critical points for continuity are x=±1
At x=−1,L.H.L.=1,R.H.L.=−1
⇒ discontinuous at x=−1, so not differentiable also.
At x=1,L.H.L.=1=R.H.L.=f(1)
⇒ continuous at x=1
also, L.H.D.=f′(1−h)=1 and
R.H.D.=f′(1+h)=0
So, not differentiable at x=1