Correct answer:

The uninfected sebaceous cyst should be removed to prevent possible complications. A small elliptical skin incision is made around the punctum of the cyst under local anaesthetic; the capsule is identified and the cyst removed intact. Failure to remove the cyst in its entirety may lead to recurrence. If the cyst is acutely inflamed, incision and drainage will be required, followed later by excision of the capsule wall.