Step 1: Recall the definition of the Z-transform.
The Z-transform is
\[
X(z)=\sum_{n=-\infty}^{\infty}x(n)z^{-n}.
\]
For
\[
x(n)=\delta(n),
\]
only the term at
\[
n=0
\]
is non-zero.
Step 2: Evaluate the summation.
\[
X(z)
=
\delta(0)z^{0}
=
1.
\]
Hence,
\[
\boxed{1}
\]
Therefore,
\[
\boxed{(B)}
\]
is the correct answer.
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