Answer
Rolle's Theorem does not apply because $f(x)$ is discontinuous at $f(0)$
Work Step by Step
We look at the function and its domain, and its endpoints
$f(x)=|\frac{1}{x}|, [-1,1]$
$f(-1)=f(1)=1)$
However, since there is a vertical asymptote at $f(0)$, that makes the graph discontinuous over the interval $[-1,1]$, and Rolle's Theorem does not apply.