The situation described is related to the critical angle and refraction in the liquid.
Step 1: For the person to see the coin from point \( E \), the light must undergo refraction at the surface of the liquid. The critical angle is given by: \[ \sin \theta_c = \frac{1}{\mu} \] where \( \theta_c \) is the critical angle.
Step 2: The refracted light must bend along the surface of the liquid. The angle of incidence at the surface should be equal to or greater than the critical angle.
Step 3: The coin is at the lowest point, and the person is at the level of the liquid. For this condition, the minimum refractive index \( \mu \) required is: \[ \mu = \sqrt{2} \]
Final Conclusion: The minimum refractive index of the liquid is \( \sqrt{2} \), which is Option (1).