Step 1: Using the given equation.
We are given that:
\[
\sin^{-1} x + \sin^{-1} y = \frac{\pi}{2}
\]
From the identity \( \sin^{-1} x + \sin^{-1} y = \frac{\pi}{2} \), we know that:
\[
\sin^{-1} x = \frac{\pi}{2} - \sin^{-1} y
\]
Therefore, \( x = \cos(\sin^{-1} y) \).
Step 2: Using the trigonometric identity.
Using the identity \( \cos(\sin^{-1} y) = \sqrt{1 - y^2} \), we have:
\[
x = \sqrt{1 - y^2}
\]
Squaring both sides, we get:
\[
x^2 = 1 - y^2
\]
Step 3: Conclusion.
Thus, \( x^2 = 1 - y^2 \). The correct answer is (1) \( 1 - y^2 \).