Step 1: Recall the standard ellipse and its important formulas.
For an ellipse in standard form:
\[
\frac{x^2}{a^2}+\frac{y^2}{b^2}=1 \quad \text{with } a>b
\]
the length of the major axis is:
\[
2a
\]
and the length of the latus rectum is:
\[
\frac{2b^2}{a}
\]
Step 2: Use the condition given in the question.
It is given that the length of the latus rectum is one-fourth of the major axis. Therefore:
\[
\frac{2b^2}{a}=\frac{1}{4}(2a)
\]
Step 3: Simplify the equation.
The right-hand side becomes:
\[
\frac{1}{4}(2a)=\frac{a}{2}
\]
So we have:
\[
\frac{2b^2}{a}=\frac{a}{2}
\]
Step 4: Solve for the relation between \(a\) and \(b\).
Multiply both sides by \(2a\):
\[
4b^2=a^2
\]
Thus,
\[
b^2=\frac{a^2}{4}
\]
Step 5: Recall the formula involving eccentricity.
For an ellipse, eccentricity \(e\) is given by:
\[
e=\sqrt{1-\frac{b^2}{a^2}}
\]
Now substitute
\[
\frac{b^2}{a^2}=\frac{1}{4}
\]
Step 6: Calculate the eccentricity.
\[
e=\sqrt{1-\frac{1}{4}}
\]
\[
e=\sqrt{\frac{3}{4}}
\]
\[
e=\frac{\sqrt{3}}{2}
\]
Step 7: State the final answer.
Hence, the eccentricity of the ellipse is:
\[
\boxed{\frac{\sqrt{3}}{2}}
\]
which matches option \((1)\).