Step 1: Find the vertices:
The two graphs cross the x-axis at $(\pm1, 0)$ and meet the y-axis at $(0, 1)$ and $(0, -1)$. The enclosed shape has these four corners.
Step 2: Shape:
All four sides have length $\sqrt2$ and the diagonals are equal (length 2), so it is a square.
Step 3: Area:
Side squared is $(\sqrt2)^2 = 2$.
Final Answer:
The area is 2 square units, option (B).
\[ \boxed{2\text{ sq. units}} \]