Step 1: Understanding the Question:
We are given a point in the 2D plane defined by its polar coordinates $(r, \theta)$ and need to convert it into standard rectangular Cartesian coordinates $(x, y)$.
Step 2: Key Formula or Approach:
The conversion equations from polar coordinates $(r, \theta)$ to Cartesian coordinates $(x, y)$ are:
$$x = r \cos \theta$$
$$y = r \sin \theta$$
Step 3: Detailed Explanation:
From the problem, we have:
$r = \sqrt{2}$
$\theta = \frac{\pi}{4}$
Substitute these values into the conversion formulas:
$$x = \sqrt{2} \cos\left(\frac{\pi}{4}\right)$$
$$y = \sqrt{2} \sin\left(\frac{\pi}{4}\right)$$
We know the exact trigonometric values for $\frac{\pi}{4}$ ($45^\circ$):
$\cos\left(\frac{\pi}{4}\right) = \frac{1}{\sqrt{2}}$
$\sin\left(\frac{\pi}{4}\right) = \frac{1}{\sqrt{2}}$
Perform the multiplication:
$$x = \sqrt{2} \times \frac{1}{\sqrt{2}} = 1$$
$$y = \sqrt{2} \times \frac{1}{\sqrt{2}} = 1$$
Step 4: Final Answer:
The Cartesian coordinates are $(1, 1)$, matching option (D).