While a vessel is at sea, the mate on watch discovers a fire in one of the hatches. Fire hoses are used to put the fire out and some of the cargo is damaged by water. In marine insurance terms, this partial loss by water is called __________.

Correct Answer: Option A — general average

General Average involves a voluntary sacrifice of part of the ship or cargo to save the whole venture from imminent peril. Water damage to cargo caused by firefighting efforts is a classic example of a General Average sacrifice, where the loss is shared proportionally among all parties involved in the venture.