Step 1: Bragg condition.
\[ n\lambda = 2d\sin\theta \]
Step 2: Smallest spacing.
The smallest spacing that still diffracts comes from the largest possible angle, where $\sin\theta = 1$.
Step 3: Solve for $d$.
\[ d = \frac{1 \times 1.54}{2 \times 1} = 0.77 \]
Step 4: Answer.
\[ \boxed{0.77 \, \text{\AA}} \]