**Core Concept**
Elschnig's pearls are a characteristic histopathological finding associated with a specific type of cataract formation, specifically in the context of posterior subcapsular cataract (PSCC). This phenomenon is linked to the abnormal aggregation of denatured lens proteins, leading to the formation of distinct, rounded opacities within the lens capsule.

**Why the Correct Answer is Right**
Elschnig's pearls are formed due to the accumulation of lens fibers that have undergone denaturation and aggregation, resulting in the characteristic rounded opacities. This process is thought to be triggered by the release of proteases that degrade the lens proteins, leading to the formation of these distinctive pearls. The presence of Elschnig's pearls is a hallmark of PSCC, which is often associated with aging, steroid use, or other systemic conditions.

**Why Each Wrong Option is Incorrect**
**Option A:** Incorrect because Elschnig's pearls are not typically associated with cortical cataracts, which have a different histopathological appearance.
**Option B:** Incorrect because Elschnig's pearls are not a characteristic finding in nuclear cataracts, which involve the central part of the lens.
**Option C:** Incorrect because Elschnig's pearls are not a feature of congenital cataracts, which have a distinct etiology and histopathology.

**Clinical Pearl / High-Yield Fact**
Elschnig's pearls are an important histopathological finding that can aid in the diagnosis of PSCC, a type of cataract that can be associated with aging, steroid use, or other systemic conditions. Recognizing the presence of Elschnig's pearls can help clinicians to differentiate PSCC from other types of cataracts.

**Correct Answer: C. Posterior subcapsular cataract (PSCC)**