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The correct answer is hydrostatic pressure, which refers specifically to the pressure exerted by a fluid at rest due to gravity. In the context of installing waterproofing in foundations, hydrostatic pressure is significant because it impacts how water interacts with building structures, especially in below-grade spaces. This pressure builds up as water accumulates around the foundation due to factors like rainfall, groundwater levels, and soil saturation.

Understanding hydrostatic pressure is crucial for designing waterproofing systems that effectively prevent water from penetrating the foundation walls. Proper waterproofing helps mitigate the potential for water-related damage, mold growth, and structural issues that excess moisture can cause.

While hydraulic pressure also involves fluids and forces, its application is broader and might not specifically pertain to the considerations for waterproofing foundations. Subterranean pressure typically relates more to soil or geological pressures rather than direct effects of water. Compaction pressure, on the other hand, deals with the forces applied to soil or backfill to improve its density and stability, which is not directly related to the need for waterproofing measures. Therefore, hydrostatic pressure is the critical factor in this scenario.