**Core Concept**
A hernia with hydrocele is a specific type of hernia that involves the protrusion of abdominal contents through a weakened area in the musculature, accompanied by a collection of fluid (hydrocele) in the scrotum. This condition is often associated with an indirect inguinal hernia, where the hernia sac passes through the internal inguinal ring and the inguinal canal.

**Why the Correct Answer is Right**
The presence of a hydrocele in a hernia is due to the fact that the hernia sac communicates with the tunica vaginalis, a serous membrane that surrounds the testis and epididymis. As a result, fluid from the abdominal cavity can accumulate in the scrotum, forming a hydrocele. This communication between the hernia sac and the tunica vaginalis is a characteristic feature of hernias with hydrocele.

**Why Each Wrong Option is Incorrect**
* **Option A:** This option is incorrect because it does not specify the type of hernia associated with hydrocele.
* **Option B:** This option is incorrect because it is a type of hernia that is not typically associated with hydrocele.
* **Option C:** This option is incorrect because it is a type of hernia that is not specifically characterized by the presence of a hydrocele.

**Clinical Pearl / High-Yield Fact**
A hydrocele in a hernia is often a sign of an indirect inguinal hernia, which may be associated with an increase in intra-abdominal pressure, such as in patients with chronic coughing or straining.

**Correct Answer:** C. Indirect inguinal hernia with hydrocele