Concept:
This problem uses the distributive property of the dot product over vector addition and subtraction, along with the magnitude relationship \( \vec{x} \cdot \vec{x} = |\vec{x}|^2 \).
Step 1: Expand the dot product equation.
We are given:
\[
(\vec{a} + \vec{b}) \cdot (\vec{a} - \vec{b}) = 198
\]
Expanding using the distributive law:
\[
\vec{a} \cdot \vec{a} - \vec{a} \cdot \vec{b} + \vec{b} \cdot \vec{a} - \vec{b} \cdot \vec{b} = 198
\]
Since the dot product is commutative (\( \vec{a} \cdot \vec{b} = \vec{b} \cdot \vec{a} \)), the middle terms cancel out:
\[
|\vec{a}|^2 - |\vec{b}|^2 = 198
\]
Step 2: Substitute the given magnitude relationship.
We are given that \( |\vec{a}| = 10 |\vec{b}| \). Substituting this into our simplified equation:
\[
(10 |\vec{b}|)^2 - |\vec{b}|^2 = 198
\]
\[
100 |\vec{b}|^2 - |\vec{b}|^2 = 198
\]
\[
99 |\vec{b}|^2 = 198
\]
Step 3: Solve for \( |\vec{b}| \) and \( |\vec{a}| \).
Divide both sides by 99:
\[
|\vec{b}|^2 = \frac{198}{99} = 2
\]
Taking the positive square root (since magnitude is always non-negative):
\[
|\vec{b}| = \sqrt{2}
\]
This matches option (B).