You are basically asked to find out what \(\frac{\sqrt{x^2}}{x}\) is.
If it had been given as \(\frac{\sqrt{x}}{x}\) then we can say that the numerator is simply x, and neglect the -x value since the square root sign considers only the positive radical.
But judging by the OA, I think the question was given in terms of what I had written in the first statement. In that case, the numerator is either a +x or a -x, depending on the original value of x. But since we don't know whether the original value was a + or a - number, we use the mod sign to indicate that we are taking the absolute value of the number, which is always positive. So your final answer will be \(\frac{|x|}{x}\)
As an example, let's consider one positive and one negative case.
x = 1
\(x^2\)= 1
\(\sqrt{x^2}\) = x = 1
So here, \(\frac{\sqrt{x^2}}{x}\) = 1
This poses no confusion since the original x value was a positive number by itself.
x = -1
\(x^2\) = 1
\(\sqrt{x^2}\) = (-x) = 1 [Note: The radical sign only indicates that the final result has to be a positive number. This doesn't necessarily mean that the answer is always 'x']
So here, we have \(\frac{\sqrt{x^2}}{x}\) = \(\frac{-x}{x}\) = -1
So, to combine both these results into one answer that fits both, we use \(\frac{|x|}{x}\)
Hope this helps.