**Core Concept**
Innate immunity is the first line of defense against infection, involving non-specific mechanisms to counter pathogens. The recognition of pathogen-associated molecular patterns (PAMPs) by pattern recognition receptors (PRRs) is crucial for the activation of innate immunity.

**Why the Correct Answer is Right**
The correct answer is Lipopolysaccharide (LPS), a component of the outer membrane of Gram-negative bacteria. LPS acts as a danger signal, recognized by Toll-like receptor 4 (TLR4) on the surface of immune cells, such as macrophages and dendritic cells. This recognition triggers a signaling cascade that activates the production of pro-inflammatory cytokines and the activation of immune cells.

**Why Each Wrong Option is Incorrect**
**Option A:** Peptidoglycan is a component of the cell wall of both Gram-positive and Gram-negative bacteria, but it is not the primary stimulator of innate immunity.
**Option B:** Capsular polysaccharides are important virulence factors, but they do not act as danger signals for innate immunity.
**Option C:** Teichoic acids are found in the cell walls of Gram-positive bacteria, but they are not the primary stimulator of innate immunity.

**Clinical Pearl / High-Yield Fact**
Mnemonic: "LPS is the key to activating the immune system's response to Gram-negative bacteria".

**Correct Answer: C. Lipopolysaccharide (LPS)**