How can it be C? Isn't the sqr root of 1 + -1. In that case, wont the option be D instead of C

When the values are under the principal square root then we take positive square root only.

You are right in actual… because in India we are taught that way…However ETS only considers + value under the root, so only 1/4 will be the answer…You cannot put any negative number under the root even if it becomes +ve with the square.