To find the divergence of the vector field \( \mathbf{v} = ax\hat{i} - by\hat{j} \), we calculate the divergence using the definition:
\[
\nabla \cdot \mathbf{v} = \frac{\partial (ax)}{\partial x} + \frac{\partial (-by)}{\partial y}
\]
Evaluating the partial derivatives:
\[
\frac{\partial (ax)}{\partial x} = a, \quad \frac{\partial (-by)}{\partial y} = -b
\]
Thus, the divergence of \( \mathbf{v} \) is:
\[
\nabla \cdot \mathbf{v} = a - b
\]
For the divergence to be zero:
\[
a - b = 0 \Rightarrow a = b
\]
This simplifies to the condition where \( a \) must equal \( b \), verifying option (A) as correct.