Step 3: Analyze the characteristics of each option. Cirrhosis is specifically known for being a chronic degenerative disease of the liver, characterized by extensive scarring and loss of liver function. Gallstones are solid deposits in the gallbladder, not typically associated with scarring. Hepatitis A is an acute viral infection, not chronic or degenerative. Fatty liver disease involves fat accumulation in the liver but does not necessarily lead to scarring unless it progresses to a severe stage.