**Core Concept**
Caspases are a family of cysteine-aspartic acid proteases that play a crucial role in the regulation of programmed cell death, also known as apoptosis. They are essential for the execution phase of cell death, where they cleave various cellular substrates, leading to the characteristic morphological changes and cellular disintegration.

**Why the Correct Answer is Right**
Caspases are activated through a cascade of proteolytic cleavage, where initiator caspases (e.g., caspase-8 and caspase-9) cleave and activate downstream executioner caspases (e.g., caspase-3 and caspase-7). This leads to the cleavage of key cellular substrates, such as DNA repair enzymes, cytoskeletal proteins, and inhibitor of caspase-activated deoxyribonuclease (ICAD), ultimately resulting in DNA fragmentation and cell death. Caspases also cleave and activate various pro-apoptotic and anti-apoptotic proteins, regulating the cell's decision to undergo apoptosis.

**Why Each Wrong Option is Incorrect**
* **Option A:** This option is incorrect because caspases are not primarily involved in the regulation of inflammation, although they can contribute to the inflammatory response by cleaving and activating pro-inflammatory cytokines.
* **Option B:** This option is incorrect because while caspases do play a role in the regulation of cell cycle progression, their primary function is the execution of programmed cell death.
* **Option C:** This option is incorrect because caspases are not directly involved in the regulation of cell proliferation.

**Clinical Pearl / High-Yield Fact**
Caspases are critical for maintaining tissue homeostasis and preventing the accumulation of damaged or mutated cells. Dysregulation of caspase activity has been implicated in various diseases, including cancer, neurodegenerative disorders, and autoimmune diseases.

**Correct Answer: C.**