Step 1: Concept
Rearrange the limit to use the standard identity $\lim_{x\to 0} \frac{\sin x}{x} = 1$.
Step 2: Meaning
The expression can be written as $(\frac{x}{\sin x}) \cdot \cos^2 x$.
Step 3: Analysis
As $x \to 0$, $\frac{x}{\sin x} \to 1$ and $\cos^2(0) \to 1^2 = 1$.
Step 4: Conclusion
The product of the limits is $1 \times 1 = 1$.
Final Answer: (E)