Concept:
When evaluating a matrix function $f(A)$ defined by a rational scalar function $f(x) = \frac{1+x}{1-x}$, we convert the fractional structure into a matrix polynomial expansion using a geometric series power expansion:
$$(1 - x)^{-1} = 1 + x + x^2 + x^3 + \dots$$
For a nilpotent matrix of order $k$ (where $A^k = 0$), the infinite matrix series terminates into a finite matrix polynomial, since all higher-power matrix terms collapse to zero.
Step 1: Rewrite the scalar function as a series function.
The given function can be factored into a product of a linear numerator and an inverse linear denominator:
$$f(x) = (1 + x)(1 - x)^{-1}$$
Using the standard infinite geometric series power expansion for $|x| < 1$:
$$f(x) = (1 + x)\left(1 + x + x^2 + x^3 + x^4 + \dots\right)$$
Distribute the $(1 + x)$ terms across the infinite sum:
$$f(x) = \left(1 + x + x^2 + x^3 + \dots\right) + \left(x + x^2 + x^3 + x^4 + \dots\right)$$
Group the matching power coefficients together:
$$f(x) = 1 + 2x + 2x^2 + 2x^3 + 2x^4 + \dots$$
Step 2: Map the scalar series directly to the matrix variable $A$.
Replacing the scalar variable $x$ with the matrix variable $A$ transforms the scalar constant $1$ into the identity matrix $I$:
$$f(A) = I + 2A + 2A^2 + 2A^3 + 2A^4 + \dots$$
Step 3: Apply the nilpotent boundary constraint condition.
We are given that the matrix $A$ is nilpotent with an index of 3, meaning:
$$A^3 = 0$$
This structural condition implies that any matrix power greater than or equal to 3 is also identically zero:
$$A^4 = A^3 \cdot A = 0 \cdot A = 0$$
$$A^5 = 0, \quad A^6 = 0, \quad \dots$$
Step 4: Collapse the matrix series to find the final polynomial expression.
Substitute these vanishing terms ($A^3 = A^4 = \dots = 0$) into our expanded matrix series for $f(A)$:
$$f(A) = I + 2A + 2A^2 + 2(0) + 2(0) + \dots$$
$$f(A) = I + 2A + 2A^2$$
This matches the exact expression given in option (A).