Concept:
Primates are an order of placental mammals distinguished by adaptations that originated during their early arboreal evolutionary history.
Major evolutionary trends in primates include structural reorganization of sensory systems, pentadactyly, prehensility, and expanded brain volume.
This question asks to identify the morphological feature that is NOT characteristic of living primates.
Step 1: Analyzing Primate Sensory Evolution:
During primate arboreal adaptation, reliance on vision superseded the sense of smell.
Primates evolved stereoscopic, binocular, trichromatic vision along with forward-facing orbits, which led to a marked reduction in the snout and olfactory apparatus (micro-osmatic condition).
Therefore, a "highly developed olfactory sense" is characteristic of macrosmatic non-primate mammals (like carnivores and rodents), not living primates.
Step 2: Verifying Other Primate Characteristics:
1. Pectoral Mammae: The reduction of the litter size to typically one offspring led to the presence of a single pair of pectoral mammae.
2. Order Diversity: With over $500$ extant species, Primates represent the 7th largest order among mammals.
3. Prehensile Limbs: Pentadactyl hands and feet featuring opposable thumbs/halluces, flat nails, and dermal tactile ridges enable effective grasping of arboreal substrates.
Step 3: Final Answer:
Living primates are characterized by a reduced olfactory sense, not a highly developed one.
Therefore, Option (A) is the correct choice.