Step 1: Find the highest derivative:
Only $y'$ and $y''$ occur. The highest is $y''$, so order $= 2$.
Step 2: Clear fractional powers:
Square both sides: $1 + (y')^{-2} = (y'')^3$. Multiply by $(y')^2$ to remove the negative power: $(y')^2 + 1 = (y')^2 (y'')^3$.
Step 3: Read the degree:
The exponent on $y''$ is 3, and no fractions or radicals remain. So degree $= 3$.
Order 3 is impossible because there is no $y'''$.
Final Answer:
Order 2, degree 3, option (A).
\[ \boxed{\text{Order 2, Degree 3 (A)}} \]