To determine the critical points and classify them, we first compute the partial derivatives of \( f(x, y) \):
\[
f_x = 4y - 4x, f_y = 4x - 4y^3.
\]
Setting both partial derivatives equal to zero:
\[
4y - 4x = 0 \text{and} 4x - 4y^3 = 0.
\]
Solving these equations, we find the critical points at \( (0, 0) \) and \( (1, 1) \).
Next, we compute the second-order partial derivatives:
\[
f_{xx} = -4, f_{yy} = -12y^2, f_{xy} = 4.
\]
At \( (0, 0) \), the discriminant is:
\[
D = f_{xx} f_{yy} - (f_{xy})^2 = (-4)(0) - (4)^2 = -16.
\]
Since \( D < 0 \), \( (0, 0) \) is a saddle point.
At \( (1, 1) \), the discriminant is:
\[
D = (-4)(-12) - (4)^2 = 48 - 16 = 32.
\]
Since \( D > 0 \) and \( f_{xx} = -4 < 0 \), \( (1, 1) \) is a point of local maximum.
Thus, the function has a point of local maximum and a saddle point, corresponding to option (A).