Step 1: Concept
Average Velocity $= \frac{\text{Displacement}}{\text{Time}}$.
Step 2: Analysis
For a quarter circle from $(0, r)$ to $(r, 0)$, the displacement is the chord length: $d = \sqrt{r^2 + r^2} = r\sqrt{2}$.
Given $r = 0.5\ m$, Displacement $= 0.5\sqrt{2}\ m$.
Step 3: Calculation
Average Velocity $= \frac{0.5\sqrt{2}}{\sqrt{2}} = 0.5\ ms^{-1}$.
Final Answer: (B)