Step 1: Identify the form of the differential equation. The equation is in the linear form \( \frac{dy}{dx} + P(x)y = Q(x) \).
Step 2: Identify the function \( P(x) \). By comparing the given equation to the standard form, we find that \( P(x) = \frac{1}{x} \).
Step 3: Calculate the integrating factor (I.F.) using the formula I.F. = \( e^{\int P(x) dx} \).
\[ \text{I.F.} = e^{\int \frac{1}{x} dx} \]
Step 4: Evaluate the integral and simplify.
\[ \text{I.F.} = e^{\ln x} = x \]