Step 1: Understanding the Concept:
Formalin is a \(40\%\) aqueous solution of formaldehyde (methanal), \(\text{HCHO}\).
Step 2: Use:
It hardens and preserves tissues by cross-linking proteins, so it is used to preserve biological and anatomical specimens. It is also used to make bakelite and urea-formaldehyde resins.
Step 3: Other options:
It is toxic, so it cannot be used as a beverage and is unsuitable as an antiseptic for living skin. Disinfectant is a minor use, but the standard answer to this question is preservation of specimens.
Final Answer:
Formalin is used for preservation of biological and anatomical specimens, option (A).
\[ \boxed{\text{Preservation of biological and anatomical specimens}} \]