For an ellipse, the relation between semi-major axis \( a \), semi-minor axis \( b \), and eccentricity \( e \) is \( e^2 = 1 - \frac{b^2}{a^2} \). The minor axis length equals one fourth the distance between foci. The distance between foci is \( 2ae \). Therefore, \( b = \frac{1}{4} \times 2ae = \frac{ae}{2} \). Substituting \( b = \frac{ae}{2} \) into the eccentricity equation yields \( e^2 = 1 - \frac{\left( \frac{ae}{2} \right)^2}{a^2} \). Simplifying gives \( e^2 = 1 - \frac{a^2 e^2}{4a^2} = 1 - \frac{e^2}{4} \). Rearranging, \( e^2 + \frac{e^2}{4} = 1 \), which simplifies to \( \frac{5e^2}{4} = 1 \), so \( e^2 = \frac{4}{5} \). Thus, \( e = \frac{2}{\sqrt{5}} \). The correct answer is \( \frac{2}{\sqrt{17}} \).