Step 1: Matrix Multiplication.
Using the distributive property of matrices and the fact that \( AB = BA = A^{-1} \), we find:
\[
(A + B)(A - B) = A^2 - B^2
\]
Thus, the expression simplifies to \( A^2 - B^2 \). Step 2: Conclusion.
The correct answer is (B), \( A^2 - B^2 \).