Step 1: Analyze option (A).
For \( x \neq 0 \), the function is smooth, and the limit as \( x \to 0 \) exists because the sine term is bounded. However, as \( y \to 0 \), the behavior of \( f(x, y) \) does not change. Therefore, the limit exists, and option (A) is true.
Step 2: Analyze option (B).
The derivative with respect to \( x \) at the point \( (0, 1) \) involves evaluating limits that depend on the oscillatory behavior of the sine term, which is not continuous. Therefore, option (B) is false.
Step 3: Analyze option (C).
The derivative with respect to \( y \) is continuous at \( (0, 1) \) because the function does not depend on \( y \) in a way that would introduce any discontinuities. Hence, option (C) is true.
Step 4: Analyze option (D).
The limit \( \lim_{(x, y) \to (0, 0)} \frac{f(x, y)}{\sqrt{x^2 + y^2}} \) does not exist because the function behaves differently depending on the path taken to approach \( (0, 0) \). Therefore, option (D) is true.
Step 5: Conclusion.
The correct answer is (D), as the limit in option (D) does not exist due to the behavior of the function.