Step 1: Understanding the scenario.
In trigonometry, the distance between the observer and the object can be related to the angle of elevation and the horizontal distance. The relationship between these quantities involves the cosine of half the angle in the context of angles involving \( 1^\circ \).
Step 2: Applying the formula.
Given that the horizontal distance between the object and the observer is \( d \), the correct expression for the distance, based on standard trigonometric relationships, is:
\[
d = \cos^2 \left( \frac{\phi}{2} \right)
\]
Step 3: Conclusion.
The correct answer is (B) because it represents the proper trigonometric identity for the given angle and distance relation.