**Core Concept**
Alcohol-induced fatty liver occurs due to an imbalance in the lipid metabolism, leading to an accumulation of triglycerides within hepatocytes. This condition is a result of the increased influx of fatty acids into the liver, which cannot be efficiently metabolized and stored as glycogen or exported out of the liver, leading to their accumulation.

**Why the Correct Answer is Right**
The correct answer is related to the increased ratio of NADH to NAD+, which is a result of alcohol metabolism. Alcohol is first converted to acetaldehyde by alcohol dehydrogenase, using NAD+ as a co-factor, resulting in an increase in NADH levels. This leads to an increased NADH/NAD+ ratio, which in turn leads to an increased flux through the malonyl-CoA pathway, resulting in increased fatty acid synthesis and decreased fatty acid oxidation.

**Why Each Wrong Option is Incorrect**
* **Option A:** This option is incorrect as it does not directly relate to the mechanism of alcohol-induced fatty liver.
* **Option B:** This option is incorrect as it is actually a protective mechanism against fatty acid oxidation.
* **Option C:** This option is incorrect as it is not directly related to the pathophysiology of alcohol-induced fatty liver.

**Clinical Pearl / High-Yield Fact**
The NADH/NAD+ ratio is a critical factor in the development of fatty liver, and this ratio can be modulated by various factors, including alcohol consumption, nutritional status, and genetic predisposition.

**Correct Answer: C. Increased NADH to NAD+ ratio.**