**Core Concept**
Hypertrophy and hyperplasia are two distinct types of cellular growth responses. Hypertrophy involves an increase in the size of cells, whereas hyperplasia involves an increase in the number of cells. This question requires an understanding of the underlying physiological principle of cellular growth and adaptation.

**Why the Correct Answer is Right**
The correct answer is an example of a condition where both hypertrophy and hyperplasia occur simultaneously. This is often seen in conditions where there is a chronic increase in demand for a particular tissue or organ, leading to an adaptive response that involves both an increase in cell size (hypertrophy) and an increase in cell number (hyperplasia). In this context, the correct answer is a classic example of compensatory growth, where the body attempts to maintain homeostasis by increasing the size and number of cells in a particular tissue or organ.

**Why Each Wrong Option is Incorrect**
**Option A:** This option is incorrect because it does not accurately reflect a condition where both hypertrophy and hyperplasia occur. While some conditions may involve hypertrophy, they do not necessarily involve hyperplasia.

**Option B:** This option is incorrect because it is a condition that primarily involves hypertrophy, but not hyperplasia. The cells in this condition increase in size, but there is no significant increase in cell number.

**Option C:** This option is incorrect because it is a condition that primarily involves hyperplasia, but not hypertrophy. The cells in this condition increase in number, but there is no significant increase in cell size.

**Clinical Pearl / High-Yield Fact**
A classic example of a condition where both hypertrophy and hyperplasia occur is in the heart, where chronic hypertension leads to an increase in cardiac workload, resulting in hypertrophy of cardiac myocytes. Additionally, there is also an increase in the number of cardiac myocytes through hyperplasia, allowing the heart to adapt to the increased demand.

**Correct Answer: C. Skeletal muscle after prolonged exercise.**