Step 1: Use the pair-of-lines formula
For $ax^2+2hxy+by^2$ here $a=2$, $2h=1$, $b=-1$. $\tan\theta=\dfrac{2\sqrt{h^2-ab}}{|a+b|}$.
Step 2: Substitute
$h^2-ab=\tfrac14+2=\tfrac94$, so $2\sqrt{h^2-ab}=3$ and $|a+b|=1$. Thus $\tan\theta=3$ and $\cos\theta=1/\sqrt{10}$, option (C).
Final Answer:
Since $\tan\theta=3$, $\theta=\cos^{-1}(1/\sqrt{10})$, option (C).
\[ \boxed{\cos^{-1}\dfrac{1}{\sqrt{10}}} \]