Step 1: The given equation is:
\[
x^2 + 2x - 4y^2 + 8y - 7 = 0
\]
Step 2: Rearrange the terms:
\[
(x^2 + 2x) - (4y^2 - 8y) = 7
\]
Step 3: Complete the square for both \( x \) and \( y \):
- For \( x^2 + 2x \), add and subtract \( 1 \) to complete the square:
\[
(x^2 + 2x + 1) = (x + 1)^2
\]
- For \( -4y^2 + 8y \), factor out the \( -4 \):
\[
-4(y^2 - 2y) = -4(y^2 - 2y + 1 - 1) = -4((y - 1)^2 - 1)
\]
Thus, the equation becomes:
\[
(x + 1)^2 - 4((y - 1)^2 - 1) = 7
\]
Simplifying further:
\[
(x + 1)^2 - 4(y - 1)^2 + 4 = 7
\]
\[
(x + 1)^2 - 4(y - 1)^2 = 3
\]
Step 4: Divide by 3 to get the standard form:
\[
\frac{(x + 1)^2}{3} - \frac{(y - 1)^2}{\frac{3}{4}} = 1
\]
Step 5: This is the standard form of a hyperbola with center \( (-1, 1) \), \( a^2 = 3 \), and \( b^2 = \frac{3}{4} \). The foci are given by \( \pm \sqrt{a^2 + b^2} \) along the \( x \)-axis (since the hyperbola opens left-right).
\[
c^2 = a^2 + b^2 = 3 + \frac{3}{4} = \frac{15}{4}
\]
\[
c = \sqrt{\frac{15}{4}} = \frac{\sqrt{15}}{2}
\]
Thus, the foci are at \( (-1 \pm \sqrt{5}, 1) \).
Therefore, the correct answer is (b) \( (-1 \pm \sqrt{5}, 1) \).