Let $\Bbb{Q}$ be the set of rationals. Let $C \subset \Bbb{Q}^2$ be defined as the set of all pairs $(x,y)$ such that $x + y = 1$. Define $(x,y)*(a,b) = (xa + yb, xb + ya)$. Notice that $C$ is closed under such an operation by observing that $(x + y)(a + b) = xa + yb + xb + ya = 1$.
Also $(1, 0)$ is a two-sided identity for the operation since:
$$ (1,0)*(a,b) = (1a + 0b, 1b + 0a) = (a,b) \\ (x,y)*(1,0) = (x1 + y0, x0 + y1) = (x,y) $$
Now does there exist a general inverse $(x,y)^{-1} = (a,b)$ with respect to $*$?
For that we would need $(xa + yb, xb + ya) = (1,0)$ or in augmented matrix form:
$$ \begin{pmatrix} x & y & | & 1 \\ y & x & | & 0 \\ \end{pmatrix} $$
which is similar via row reduction to the matrix:
$$ \begin{pmatrix} 1 & 0 & | & \frac{1}{x} + \frac{y}{x(x^2 - y^2)} \\ 0 & 1 & | & \frac{-y}{x^2 - y^2} \end{pmatrix} $$ as long as $x \neq 0$ and $(x-y)(x+y) = x^2 - y^2 \neq 0$ or $x \neq y$ since $x + y = 1$ by definition. Thus add the two constraints $0 \neq x \neq y$ to the definition of $C$.
We then need to show that $*$ respects these constraints. If $0 \neq x \neq y$ and $0 \neq a \neq b$, then we have: $(x,y)*(a,b) = (xa + yb, xb + ya)$ and if $xa + yb = 0$ then $xb + ya = 1$.
I can show easily that $xa + yb \neq xb + ya$ since if so, then $x(a - b) - y(a - b) = (x - y)(a-b) = 0$ and so at least one of $a = b$ or $x = y$, a contradiction.
What I am having trouble showing is that $xa + yb \neq 0$. If this is impossible to show - there exist solutions such that $x a + yb = 0$, then what constraint can I add in order to turn $C$ into a group?
A slightly different viewpoint.
Your structure is captured by the usual multiplication on the set of $2\times 2$ matrices of the form $\pmatrix {x & y\\ y & x}$ which have $1$-eigenvector $(1 1)$. This gives the closure easily, the associativity, and the fact that the identity is given by $x=1, y=0$. It's clear, too, that inverses exist provided the matrix is non-singular, $x^2\not= y^2$, that is $x\not=\frac12$.
But the structure is even easier. All these matrices can be simultaneously diagonalised as they all have $(1 1)$ and $(1 -1)$ as eigenvectors, the eigenvalues being $1$ and $x-y$. So with respect to that basis we're looking at the set of matrices $\pmatrix{1 &0\\0 & x-y}$ under matrix multiplication. Removing the $x=y$ case we are left with the set of all $\pmatrix{1 &0\\0 & t}, t\not=0$, clearly isomorphic with the group $\mathbb{Q}^{*}$.