Concept:
One of the most important properties of determinants is
\[
|AB|=|A||B|.
\]
As a consequence,
\[
|A^2|
=
|A|^2.
\]
Therefore, instead of calculating the matrix \(A^2\) first, we can directly compute the determinant of \(A\) and then square it. This significantly reduces the amount of computation required.
Step 1: Write the given matrix.
\[
A=
\begin{bmatrix}
1 & 2\\
2 & 1
\end{bmatrix}.
\]
Step 2: Find the determinant of \(A\).
For a \(2\times2\) matrix
\[
\begin{bmatrix}
a & b\\
c & d
\end{bmatrix},
\]
the determinant is
\[
ad-bc.
\]
Therefore,
\[
|A|
=
(1)(1)-(2)(2).
\]
\[
=
1-4.
\]
\[
=-3.
\]
Step 3: Use the determinant property.
Since
\[
|A^2|
=
|A|^2,
\]
we obtain
\[
|A^2|
=
(-3)^2.
\]
\[
=9.
\]
Step 4: Verification by direct multiplication.
Computing
\[
A^2
=
\begin{bmatrix}
1 & 2\\
2 & 1
\end{bmatrix}
\begin{bmatrix}
1 & 2\\
2 & 1
\end{bmatrix},
\]
gives
\[
A^2=
\begin{bmatrix}
5 & 4\\
4 & 5
\end{bmatrix}.
\]
Now,
\[
|A^2|
=
(5)(5)-(4)(4).
\]
\[
=
25-16.
\]
\[
=9.
\]
Thus our answer is verified.
Step 5: Final Conclusion.
\[
\boxed{|A^2|=9}
\]
Hence the correct answer is
\[
\boxed{\text{Option (A)}}.
\]