What can occur if hydraulic fluid overheats in the system?

When hydraulic fluid overheats in a system, it can lead to decreased efficiency and potential damage, which is why this is the correct answer. Elevated temperatures can cause the fluid to break down chemically, reducing its ability to perform effectively as a hydraulic medium. This breakdown can result in a loss of lubrication properties, leading to increased friction and wear on components. Additionally, as the fluid's temperature rises excessively, it may cause expansion in the hydraulic system, resulting in leaks or seal failures.

Other effects of overheating may include a change in viscosity, which can adversely affect flow characteristics. However, the most critical concerns are the reduced efficiency in power transmission and the risk of damaging both the hydraulic fluid and the system components due to overheating. Therefore, monitoring the temperature of hydraulic fluid is essential for maintaining system integrity and performance.