Answer: B
Q05.1 is the correct code as it is used to code for thoracic spina bifida with hydrocephalus, which is the diagnosis in the baby.
Option A is not correct because Q05.0 is used to specify cervical spina bifida with hydrocephalus. Here, the baby is diagnosed with thoracic spina bifida.
Option C is not correct because Q01.0 is used to specify frontal encephalocele, which is not the diagnosis here.
Option D is not correct because Q02 is used to specify microcephaly, which is not the diagnosis here.