Hi fiza gupta,
This question is fairly 'high-concept', but you can solve it with a drawing and a bit of logic.
When you graph the equation X^2 + Y^2 = 1, you will have a circle with a radius of 1 that is centered around the Origin. There are only four points on that circle that are integer values: (0,1), (1, 0), (0, -1) and (-1, 0). All of the other points are positive/negative fractional values. Knowing that, the ONLY way for the inequality Y > X + 1 to occur is when X is NEGATIVE and Y is POSITIVE. That outcome only occurs in the 2nd quadrant of the graph (which is 1/4 of the circle). While you might be unsure about whether every point in that quadrant would 'fit' the inequality or not, the answer choices ARE numbers - and the smallest of them is 1/4. Since there's no smaller possibility, 1/4 must be the answer.
Final Answer: A
GMAT assassins aren't born, they're made,
Rich