We are given an ellipse with eccentricity \( e = \frac{1}{2} \) and foci at \( (\pm 1, 0) \).
Step 1: Use the equation for an ellipse
The standard equation of an ellipse is:
\[
\frac{x^2}{a^2} + \frac{y^2}{b^2} = 1
\]
where \( a \) is the semi-major axis, and \( b \) is the semi-minor axis.
The relationship between \( a \), \( b \), and the eccentricity \( e \) is:
\[
e^2 = 1 - \frac{b^2}{a^2}
\]
Step 2: Use the given eccentricity
Substituting \( e = \frac{1}{2} \), we get:
\[
\left( \frac{1}{2} \right)^2 = 1 - \frac{b^2}{a^2}
\]
This simplifies to:
\[
\frac{1}{4} = 1 - \frac{b^2}{a^2} \quad \Rightarrow \quad \frac{b^2}{a^2} = \frac{3}{4}
\]
Thus, \( b^2 = \frac{3}{4} a^2 \).
Step 3: Conclusion
Since the foci are at \( (\pm 1, 0) \), we can deduce that \( a = 2 \), so \( b = \sqrt{3} \).
Thus, the correct equation of the ellipse is \( \frac{x^2}{4} + \frac{y^2}{3} = 1 \), corresponding to option (b).