Step 1: Recall the radius of Mohr's circle.
The radius of Mohr's circle is
\[
R=\frac{\sigma_1-\sigma_2}{2},
\]
where \(\sigma_1\) and \(\sigma_2\) are the principal stresses.
Step 2: Determine the maximum shear stress.
The maximum shear stress is equal to the radius of the circle.
Thus,
\[
\tau_{\max}
=
R
=
\frac{\sigma_1-\sigma_2}{2}.
\]
Hence,
\[
\boxed{\text{Maximum shear stress = Radius of Mohr's circle}.}
\]
Therefore,
\[
\boxed{(A)}
\]
is the correct answer.