Step 1: Concept
By switching the order of summation and integration (justified by uniform convergence on the interval), the expression can be rewritten as $\int_{0}^{1} x^{3} \left( \sum_{n=1}^{\infty} (1-x^{2})^{n} \right) dx$.
Step 2: Meaning
The inner summation $\sum_{n=1}^{\infty} (1-x^{2})^{n}$ is an infinite geometric series with first term $a = (1-x^2)$ and common ratio $r = (1-x^2)$. For $x \in (0,1)$, $|r| < 1$, so the sum is $\frac{a}{1-r} = \frac{1-x^2}{1-(1-x^2)} = \frac{1-x^2}{x^2}$.
Step 3: Analysis
Substitute this simplified series sum back into our definite integral:
$\int_{0}^{1} x^3 \left(\frac{1-x^2}{x^2}\right) dx = \int_{0}^{1} x(1-x^2) dx = \int_{0}^{1} (x - x^3) dx$.
Now compute the simple power rule integral:
$\left[ \frac{x^2}{2} - \frac{x^4}{4} \right]_{0}^{1} = \left(\frac{1}{2} - \frac{1}{4}\right) - (0 - 0) = \frac{1}{4}$.
Step 4: Conclusion
The resulting value is $\frac{1}{4}$, which perfectly matches option (A).
Final Answer: (A)