I'll write this answer since I think your question was well-intentioned (perhaps you're even a self-studier) and you should get some clarification on what $\epsilon-\delta$ actually does.
The function you posted is continuous at $x=1$ so we have that
$$\lim_{x\to1}\frac{x^2}{x^2+1} = \frac{1^2}{1^2+1} = \frac{1}{2}$$
However this isn't a full proof unless you proved the theorem "continuous implies plug the limit in" yourself. Instead consider this scratch work. So far you have "guessed" that
$$\lim_{x\to1}\frac{x^2}{x^2+1}"="\frac{1}{2}$$
seems like a reasonable choice. To prove it, we would need to use $\epsilon-\delta$, which is a kind of game. The goal of this game is to find $\delta$ as some formula (sometimes a function) of $\epsilon$ and we do this by manipulating the term
$$|f(x)-L| < \epsilon$$
to look like
$$|x-a|<\delta$$
In this case, consider
$$\left|\frac{x^2}{x^2+1}-\frac{1}{2}\right| = \left|\frac{x^2-1}{2(x^2+1)}\right| = \left|\frac{x+1}{2(x^2+1)}\right||x-1|$$
Notice that we have factored out a term of the form $|x-a|$. Now we want to find a max for the term in front
$$\left|\frac{x+1}{2(x^2+1)}\right| \leq \left|\frac{x}{2(x^2+1)}\right| + \left|\frac{1}{2(x^2+1)}\right| \leq \frac{1}{4}+\frac{1}{2} = \frac{3}{4}$$
The first term is from AM-GM inequality, $a^2+b^2 \geq 2|a||b|$. The second term is from $x^2+1\geq 1$. Continuing on, this means that
$$\left|\frac{x+1}{2(x^2+1)}\right||x-1| < |x-1|$$
since $\frac{3}{4} < 1$. What this means is we now have the tools to make a proof with $\epsilon-\delta$, and it follows this script:
For every $\epsilon > 0$, choose $\delta = \epsilon$. This means that
$$\delta = \epsilon > |x-1| > \left|\frac{x+1}{2(x^2+1)}\right||x-1| = \left|\frac{x^2}{x^2+1}-\frac{1}{2}\right|$$
Or in other words, this choice of $\delta$ means
$$|x-1|<\delta \implies \left|\frac{x^2}{x^2+1}-\frac{1}{2}\right| < \epsilon$$
and we have successfully proved that
$$\lim_{x\to1}\frac{x^2}{x^2+1}=\frac{1}{2}$$