Step 1: Omphalocele (exomphalos) is herniation of the abdominal viscera through an enlarged umbilical ring, with the sac covered by amnion and peritoneum. The herniated contents may include liver, small and large intestine, stomach, spleen, or bladder.
Step 2: During normal development the midgut undergoes a physiological herniation into the umbilical cord and then returns into the abdominal cavity between roughly the 6th and 10th weeks of gestation.
Step 3: Omphalocele results when this gut fails to return to the body cavity from its physiological herniation, so the viscera remain outside, covered by the membrane.
Step 4: The other choices describe different anomalies: intestinal duplications, malrotation, and reversed rotation are rotation or developmental defects, not the cause of omphalocele. The correct answer is failure of the gut to return from physiological herniation.