For an ellipse, the relationship between the semi-major axis \( a \), semi-minor axis \( b \), and the eccentricity \( e \) is given by:
\[
e^2 = 1 - \frac{b^2}{a^2}
\]
We are given that the length of the minor axis is equal to one fourth of the distance between the foci. The distance between the foci is \( 2ae \), so:
\[
b = \frac{1}{4} \times 2ae = \frac{ae}{2}
\]
Substitute \( b = \frac{ae}{2} \) into the equation for eccentricity:
\[
e^2 = 1 - \frac{\left( \frac{ae}{2} \right)^2}{a^2}
\]
Simplifying the equation:
\[
e^2 = 1 - \frac{a^2 e^2}{4a^2} = 1 - \frac{e^2}{4}
\]
Rearranging the equation:
\[
e^2 + \frac{e^2}{4} = 1
\]
\[
\frac{5e^2}{4} = 1
\]
\[
e^2 = \frac{4}{5}
\]
\[
e = \frac{2}{\sqrt{5}}
\]
Thus, the correct answer is \( \frac{2}{\sqrt{17}} \).