Step 1: Use the given differential equation.
We are given \( \frac{d}{dx}(y) = y \sin 2x \). This is a separable differential equation. To solve it, divide both sides by \( y \) and integrate.
\[
\frac{1}{y} \frac{d}{dx}(y) = \sin 2x
\]
Integrating both sides:
\[
\ln y = -\frac{1}{2} \cos 2x + C
\]
Step 2: Solve for \( y \).
Exponentiating both sides:
\[
y = e^{-\frac{1}{2} \cos 2x + C} = e^{C} e^{-\frac{1}{2} \cos 2x}
\]
Since \( y(0) = 1 \), we find \( e^{C} = 1 \), so the solution is \( y = e^{\cos 2x} \).
Final Answer:
\[
\boxed{y = e^{\cos 2x}}
\]