Step 1: Concept
Find the critical points using the first derivative and test for minima/maxima using the second derivative.
Step 2: Meaning
$y' = x e^{x} + e^{x} = e^{x}(x+1)$. Set $y' = 0 \implies x = -1$.
Step 3: Analysis
$y'' = e^{x}(1) + (x+1)e^{x} = e^{x}(x+2)$. At $x = -1$, $y'' = e^{-1}(-1+2) = 1/e$.
Step 4: Conclusion
Since $y'' > 0$ at $x = -1$, the function has a local minimum at $x = -1$.
Final Answer: (A)