Concept:
The integral of $\frac{1}{x}$ with respect to $x$ is one of the foundational calculus formulas: $\int \frac{1}{x} dx = \log|x| + C$ (using the natural logarithm). Once the antiderivative is found, use the Fundamental Theorem of Calculus to evaluate the bounds.
Step 1: Find the antiderivative.
Integrate the function $\frac{1}{x}$:
$$\int \frac{1}{x} dx = \log|x|$$
Step 2: Set up the evaluation limits.
Apply the limits of integration from $1$ to $e$:
$$[\log|x|]_{1}^{e}$$
Step 3: Substitute the upper limit.
Plug the upper limit $e$ into the antiderivative:
$$\log|e| = 1$$
*(Note: The natural logarithm of Euler's number $e$ is exactly 1).*
Step 4: Substitute the lower limit.
Plug the lower limit $1$ into the antiderivative:
$$\log|1| = 0$$
Step 5: Subtract to find the final value.
Subtract the lower limit evaluation from the upper limit evaluation:
$$1 - 0 = 1$$
Hence the correct answer is (B) 1.