Consider a straight wire carrying current \( I \) along the axis of a circular loop also carrying current \( I \). According to Ampère’s Law and the Biot–Savart law, the magnetic field at a point along the axis of a circular loop of radius \( r \) carrying current \( I \) is given by:
\[
B = \frac{\mu_0 I}{2r} \quad \text{(on the axis of the loop)}
\]
where:
- \( \mu_0 \) is the permeability of free space,
- \( r \) is the radius of the circular loop,
- \( I \) is the current in the loop.
Now, the force on a current-carrying wire in a magnetic field is given by:
\[
F = I L B \sin \theta
\]
where:
- \( I \) is the current in the wire,
- \( L \) is the length of the wire,
- \( B \) is the magnetic field, and
- \( \theta \) is the angle between the direction of the magnetic field and the wire.
Since the wire is along the axis of the circular loop, \( \theta = 90^\circ \), so \( \sin \theta = 1 \).
The length of the wire \( L \) can be assumed to be infinitesimal for a small section of the wire. Thus, the force on the wire due to the loop's magnetic field is:
\[
F = I L \times \frac{\mu_0 I}{2r}
\]
Therefore, the force is proportional to \( I^2 \), as the current in the wire and the loop are both involved in the interaction, and their effects are squared in the formula.
Thus, the correct answer is (A) \( I^2 \).