Step 1: Pegloticase is a recombinant pegylated uricase (urate oxidase). It converts uric acid into allantoin, which is highly water soluble and easily excreted, producing a dramatic fall in serum urate.
Step 2: It is reserved for severe, refractory chronic gout, especially chronic tophaceous gout, when other urate-lowering drugs (allopurinol, febuxostat, uricosurics) have failed or are not tolerated. This makes option C correct.
Step 3: Why the others are wrong: reactive arthritis is a seronegative spondyloarthropathy managed with NSAIDs and treating the trigger; CPPD (pseudogout) is treated with NSAIDs, colchicine, or steroids, not urate-lowering agents; refractory rheumatoid arthritis needs DMARDs and biologics like anti-TNF agents, not a uricase.
Ref: Gout and Other Crystal Arthropathies, Robert Terkeltaub.