**Core Concept**
Hyaline membrane disease, also known as respiratory distress syndrome (RDS), is a condition that affects premature infants. It occurs due to a deficiency of surfactant, a substance that reduces the surface tension in the lungs, making it easier to breathe. This deficiency leads to alveolar collapse and atelectasis.

**Why the Correct Answer is Right**
The correct answer is related to the pathophysiology of hyaline membrane disease. The lack of surfactant in the lungs leads to an increase in surface tension, causing alveolar collapse and atelectasis. This results in the formation of hyaline membranes, which are composed of fibrin and cellular debris. The alveolar collapse and atelectasis lead to hypoxemia and respiratory distress.

**Why Each Wrong Option is Incorrect**
* **Option A:** This option is not directly related to the pathology of hyaline membrane disease. While inflammation can occur in the lungs, it is not the primary cause of hyaline membrane disease.
* **Option B:** This option is also incorrect. While surfactant deficiency is the primary cause of hyaline membrane disease, the formation of hyaline membranes is not due to an excess of surfactant.
* **Option D:** This option is incorrect. While meconium aspiration can cause respiratory distress, it is not the primary cause of hyaline membrane disease.

**Clinical Pearl / High-Yield Fact**
Premature infants are at risk of developing hyaline membrane disease due to a deficiency of surfactant. Surfactant replacement therapy is a common treatment for hyaline membrane disease, which can significantly improve the outcome in affected infants.

**Correct Answer: C. Alveolar collapse and atelectasis.**