Step 1: Understanding the Concept:
This question tests the use of indefinite articles ('a' and 'an'). The choice between them depends on the initial sound of the following word, not the letter itself.
Step 2: Detailed Explanation:
- The article 'a' is used before words that begin with a consonant sound.
- The article 'an' is used before words that begin with a vowel sound.
The word in question is 'university'. Although it starts with the vowel 'u', the pronunciation is /ˈjuːnɪvɜːrsəti/. The initial sound is /j/ (like the 'y' in 'yes'), which is a consonant sound.
Therefore, the correct article is 'a'.
The complete sentence is: "There is a university here."
Step 3: Final Answer:
Because 'university' begins with a consonant sound (/j/), the correct article is 'a'. Therefore, option (A) is correct.