**Core Concept**
The question is testing the understanding of the anatomy of the penis and the layers of the penile fascia. Specifically, it is evaluating the knowledge of the tunica albuginea and Buck's fascia, and their role in maintaining penile integrity.

**Why the Correct Answer is Right**
When the tunica albuginea is ruptured in a fracture of the penis, but Buck's fascia remains intact, the patient may exhibit a characteristic deformity known as a "hanging penis." This occurs because the Buck's fascia, which is a tough fibrous layer, acts as a sling to support the penis. Even with a rupture of the tunica albuginea, the penis remains attached to the pubic bone via the Buck's fascia, resulting in a downward displacement of the penis. This deformity is a classic clinical finding in this type of injury.

**Why Each Wrong Option is Incorrect**
* **Option A:** This option is incorrect because it does not accurately describe the clinical finding associated with a fracture of the penis involving rupture of the tunica albuginea with intact Buck's fascia. The deformity is not a "dangling penis" but rather a "hanging penis."
* **Option B:** This option is incorrect because it does not accurately describe the clinical finding associated with a fracture of the penis involving rupture of the tunica albuginea with intact Buck's fascia. The deformity is not a "flaccid penis" but rather a "hanging penis."
* **Option C:** This option is incorrect because it does not accurately describe the clinical finding associated with a fracture of the penis involving rupture of the tunica albuginea with intact Buck's fascia. The deformity is not an "absence of erection" but rather a "hanging penis."
* **Option D:** This option is incorrect because it does not accurately describe the clinical finding associated with a fracture of the penis involving rupture of the tunica albuginea with intact Buck's fascia. The deformity is not a "penile hematoma" but rather a "hanging penis."

**Clinical Pearl / High-Yield Fact**
It is essential to note that the presence of a "hanging penis" in a patient with a fracture of the penis should raise suspicion for a rupture of the tunica albuginea with intact Buck's fascia. This deformity is a classic clinical finding in this type of injury and should prompt further evaluation and management.

**Correct Answer:** C.