Step 1: Recall the definition of disjoint sets.
If \( A \cap B = \phi \), it means that sets \( A \) and \( B \) have no elements in common. Such sets are called disjoint sets.
Step 2: Analyze each option.
Final Answer: The correct statement is \( \mathbf{\text{A and B are disjoint sets}} \), which corresponds to option \( \mathbf{(1)} \).