Step 1: Understanding the Question:
The problem presents an integration identity where we need to find the functional form of $f(x)$ inside the inverse tangent function after evaluating the indefinite integral.
Step 2: Key Formula or Approach:
This is a standard algebraic fractional integration template. We can solve it by dividing both the numerator and the denominator by $x^2$ and then executing an algebraic substitution.
Step 3: Detailed Explanation:
Let the given integral be $I$:
$$ I = \int \frac{1+x^2}{1+x^4} d x $$
Dividing the numerator and the denominator by $x^2$:
$$ I = \int \frac{\frac{1}{x^2} + 1}{\frac{1}{x^2} + x^2} d x = \int \frac{1 + \frac{1}{x^2}}{x^2 + \frac{1}{x^2}} d x $$
Let's rewrite the denominator by completing the square in terms of a subtraction binomial:
$$ x^2 + \frac{1}{x^2} = \left(x - \frac{1}{x}\right)^2 + 2 $$
Substituting this back into the denominator yields:
$$ I = \int \frac{1 + \frac{1}{x^2}}{\left(x - \frac{1}{x}\right)^2 + 2} d x $$
Now, let's use the substitution method:
$$ \text{Put } x - \frac{1}{x} = t $$
Differentiating both sides with respect to $x$:
$$ \left(1 - \left(-\frac{1}{x^2}\right)\right) d x = d t \implies \left(1 + \frac{1}{x^2}\right) d x = d t $$
Our integral transforms cleanly to:
$$ I = \int \frac{d t}{t^2 + 2} = \int \frac{d t}{t^2 + (\sqrt{2})^2} $$
Applying the standard integration rule $\int \frac{d x}{x^2 + a^2} = \frac{1}{a} \tan^{-1}\left(\frac{x}{a}\right) + c$:
$$ I = \frac{1}{\sqrt{2}} \tan^{-1}\left(\frac{t}{\sqrt{2}}\right) + c $$
Replacing $t$ with its original expression $x - \frac{1}{x}$:
$$ I = \frac{1}{\sqrt{2}} \tan^{-1}\left[\frac{x - \frac{1}{x}}{\sqrt{2}}\right] + c $$
Comparing this result directly with the given formula reveals that $f(x) = x - \frac{1}{x}$.
Step 4: Final Answer:
The function $f(x)$ is equal to $x - \frac{1}{x}$, which corresponds to option (B).