**Core Concept**
Benzyl peroxide is a topical medication used in the treatment of acne vulgaris. It works by reducing the population of Cutibacterium acnes (previously known as Propionibacterium acnes), a bacterium that contributes to the development of acne.

**Why the Correct Answer is Right**
Benzyl peroxide exerts its effects by releasing reactive oxygen species (ROS) that damage the membranes of Cutibacterium acnes, ultimately leading to bacterial death. This reduces the production of inflammatory mediators and prevents the formation of comedones (blackheads and whiteheads). The antibacterial action of benzyl peroxide also helps to decrease the production of sebum, which is another factor contributing to acne development.

**Why Each Wrong Option is Incorrect**
**Option A:** This option is incorrect because while benzyl peroxide does have some anti-inflammatory properties, its primary mechanism of action is antibacterial.
**Option B:** This option is incorrect because benzyl peroxide does not work by reducing sebum production; in fact, its antibacterial action can indirectly decrease sebum production by reducing the population of Cutibacterium acnes.
**Option C:** This option is incorrect because while benzyl peroxide does have some keratolytic properties, its primary mechanism of action is antibacterial.

**Clinical Pearl / High-Yield Fact**
Benzyl peroxide is also used as a disinfectant and has been shown to be effective against other skin pathogens, such as Staphylococcus aureus. However, it can cause skin irritation and dryness, especially if used in high concentrations or for prolonged periods.

**Correct Answer:** C.