Step 1: Concept
For any quadratic equation $ax^2 + bx + c = 0$ to have real and distinct roots, its discriminant $D = b^2 - 4ac$ must be strictly greater than zero ($D > 0$).
Step 2: Meaning
For the equation $x^2 - 2px + q^2 = 0$, the coefficients are $a = 1$, $b = -2p$, and $c = q^2$.
Step 3: Analysis
Calculate the discriminant:
\[ D = (-2p)^2 - 4(1)(q^2) = 4p^2 - 4q^2 \]
Since the roots are real and distinct:
\[ D > 0 \implies 4p^2 - 4q^2 > 0 \implies p^2 > q^2 \]
Taking the square root on both sides:
\[ |p| > |q| \]
Step 4: Conclusion
Thus, the condition for real and distinct roots is $|p| > |q|$.
Final Answer: (A)