Most electrification systems use overhead wires, but third rail is an option up to about 1,200 V. Third rail systems exclusively use DC distribution. The use of AC is not feasible because the dimensions of a third rail are physically very large compared with the skin depth that the alternating current penetrates to (0.3 millimetres or 0.012 inches) in a steel rail). This effect makes the resistance per unit length unacceptably high compared with the use of DC. Third rail is more compact than overhead wires and can be used in smaller-diameter tunnels, an important factor for subway systems.
Try to answer this question if possible (otherwise reply "unanswerable"): What is more prefferable for subway lines?
Third rail