Solution: Clearly, $0, 1 \in K^G$. Let $a, b \in K^G$. Then for all $\sigma \in G$, we have $\sigma(a) = a$ and $\sigma(b) = b$. Hence, $\sigma(a + b) = \sigma(a) + \sigma(b) = a + b$, $\sigma(ab) = \sigma(a)\sigma(b) = ab$, and $\sigma(a^{-1}) = \sigma(a)^{-1} = a^{-1}$, showing that $a + b, ab, a^{-1} \in K^G$.
