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A circuit that cannot cause a fire in a hazardous condition is referred to as an intrinsically safe system. This type of system is designed so that any potential electrical energy present in the circuit is kept below a level that could ignite a hazardous atmosphere, such as flammable gases or dust.

Intrinsic safety relies on limiting both the voltage and the current in the circuit to safe levels, ensuring that even if there are faults, the energy available is insufficient to cause combustion. This makes intrinsically safe systems essential in environments where the risk of explosion or fire is heightened, such as chemical plants or oil refineries.

When comparing this to the other options, a safe circuit might refer vaguely to a circuit designed to minimize hazards, but it does not specifically denote the intrinsic safety principles. A grounded circuit is intended to reduce shock hazards by directing fault currents safely to the ground, while an isolated circuit may refer to electrical separation to prevent shock but does not inherently address the risks associated with igniting hazardous materials. Thus, intrinsically safe systems are specifically engineered for use in dangerous environments, making it the correct and most precise choice.