Step 1: Check for continuity.
The function \(y = \sin^2(|x|)\) is continuous everywhere because the sine function and the square of a continuous function are both continuous. The absolute value function \(|x|\) is also continuous, and thus the composition of these functions remains continuous.
Step 2: Check for differentiability.
Although the function is continuous for all \(x\), it is not differentiable at \(x = 0\). This is due to the fact that the derivative of \(\sin^2(|x|)\) at \(x = 0\) does not exist because the left-hand and right-hand derivatives are not equal.
Step 3: Conclusion.
The correct answer is (A) continuous for all \(x\), as the function is continuous at every point, including \(x = 0\), but it is not differentiable at \(x = 0\).