Step 1: Set up the integral and simplify.
The given double integral is:
\[
I = \int_0^1 \int_0^{1 - y^2} y \sin (\pi(1 - x^2)^2) \, dx \, dy.
\]
First, evaluate the inner integral with respect to \( x \), and then integrate with respect to \( y \). Simplify the trigonometric expression and solve the integrals.
Step 2: Conclusion.
After performing the integration, the value of the integral is \( \frac{\pi}{2} \), so the correct answer is \( (C) \).