Step 1: Understanding the Concept:
A pediculicide is an ectoparasiticide agent formulated specifically to treat and eradicate infestations of lice (such as head lice, body lice, and pubic lice) on humans or animals.
Step 2: Detailed Explanation:
Lindane (also known as gamma-hexachlorocyclohexane or \(\gamma\)-HCH) is a chlorinated hydrocarbon insecticide.
While its agricultural uses are heavily restricted globally due to environmental persistence, it has historically been used in pharmaceutical concentrations (such as \(1\%\) lotions and shampoos) as a second-line prescription pediculicide and scabicide treatment.
Step 3: Final Answer:
The insecticide used in pediculicide formulations is Lindane, which corresponds to option (B).