Which of the following best characterizes 'fatty liver' in the context of alcoholic liver disease?

Accumulation of fat (steatosis) in hepatocytes due to altered hepatic metabolism; it is usually reversible with cessation of alcohol intake.

A rare congenital lipid storage disease unrelated to alcohol consumption and not responsive to changes in drinking behavior.

Immediate hepatocyte death and widespread scar formation that is irreversible even with abstinence.

An acute vascular occlusion of the liver caused by fat emboli that always requires emergent surgery and is not modified by alcohol cessation.