We are given that the function \( f(x) \) is defined as:
\[
f(x) = \frac{|x|}{1 + |x|}
\]
Step 1: Differentiating the function
The derivative of \( f(x) \) depends on whether \( x \) is positive or negative, since the absolute value function changes its expression depending on the sign of \( x \).
- For \( x>0 \), \( |x| = x \), so:
\[
f(x) = \frac{x}{1 + x}
\]
The derivative of this is:
\[
f'(x) = \frac{(1+x) \cdot 1 - x \cdot 1}{(1+x)^2} = \frac{1}{(1+x)^2}
\]
- For \( x<0 \), \( |x| = -x \), so:
\[
f(x) = \frac{-x}{1 - x}
\]
The derivative of this is:
\[
f'(x) = \frac{(1-x) \cdot (-1) - (-x) \cdot (-1)}{(1-x)^2} = \frac{-2x}{(1-x)^2}
\]
Step 2: Finding \( f'(-2) \)
Since we are asked to find \( f'(-2) \), we use the derivative for \( x<0 \):
\[
f'(-2) = \frac{-2(-2)}{(1 - (-2))^2} = \frac{4}{(1 + 2)^2} = \frac{4}{9}
\]
Thus, the correct answer is \( \frac{-4}{9} \). Therefore, the correct answer is option (C).