Step 1: Understanding the Question:
We need to simplify a trigonometric expression involving the angles and sides of a general triangle $ABC$ using standard triangle properties.
Step 2: Key Formula or Approach:
We will use the angle sum property of a triangle ($A + B + C = 180^\circ$), basic trigonometric reduction formulas, and the Cosine Rule:
$$\cos C = \frac{a^2 + b^2 - c^2}{2ab}$$
Step 3: Detailed Explanation:
In any $\triangle ABC$, we know that:
$$A + B + C = 180^\circ \Rightarrow A + B = 180^\circ - C$$
Let's substitute this identity into the argument of the sine function:
$$A + B - C = (180^\circ - C) - C = 180^\circ - 2C$$
Dividing this by 2 inside the sine expression:
$$\sin \frac{1}{2}(A + B - C) = \sin \left(\frac{180^\circ - 2C}{2}\right) = \sin(90^\circ - C)$$
Using the trigonometric co-function identity $\sin(90^\circ - C) = \cos C$:
$$\sin \frac{1}{2}(A + B - C) = \cos C$$
Now substitute this back into the target expression:
$$\text{Expression} = 2ab \cos C$$
From the standard Law of Cosines, we substitute $\cos C = \frac{a^2 + b^2 - c^2}{2ab}$:
$$\text{Expression} = 2ab \cdot \left(\frac{a^2 + b^2 - c^2}{2ab}\right)$$
The term $2ab$ cancels completely from the numerator and denominator:
$$\text{Expression} = a^2 + b^2 - c^2$$
Step 4: Final Answer:
The simplified expression matches option (B).