From the Gamesradar hands on preview comments section:

rocketfuel(Me)
Hey, you mentioned equipping the Argonian racial ability as a favourited spell, do you mind disclosing what that ability was?

GamesRadarMatthewKeast
The Argonian's racial ability was called Hist and it gives you a boost to health regeneration for a short time, but it's a once-daily power.



Don't know if you guys knew that or not, but I found it pretty nifty and it means that there water breathing is not the ability he equipped.

Source
http://www.gamesradar.com/ps3/the-elder-scrolls-v-skyrim/preview/the-elder-scrolls-v-skyrim-hands-on-preview/a-20110808185216854069/g-20100727104624305081/c-2
(scroll down)

awsome i would have hated to equiped waterbreathing to a race with gills

Pretty nice, Iv'e never played an Argonian before but with their updated look (at least from the concept art) and sweet powers, I think I'll give them a go =]

I think that the Argonian can naturally breathe underwater, so you dont have to do anything other than be underwater for that racial trait. The lizards racial ability does sound cool. I wonder if they kept the Redguard adrenaline rush ability.

I hope they still have all their old passives, because their active sounds just sounds like a health potion.

Awesome, hopefully we find out more about the Hist :bowdown: this time round.

I imagine that the water breathing would just be a passive trait, treated like a perk from a dev. perspective.

Im likeing the fact that it seems we will have more racial abiltys

like a Kahjit night eye should be and don't forget the poison and disease resistance

Im most curious to see how animal allie will work id love to be able to recruit certain critters and play a ranger type character.