What is indicated when the fire alarm sounds?

When the fire alarm sounds, it indicates a potential fire hazard. This alert is designed to notify individuals of a serious situation that may pose a threat to safety, prompting immediate action such as evacuation or further investigation. In a controlled environment, this warning serves as a crucial signal to assess the situation closely, ensuring that proper safety protocols are followed to mitigate any risks associated with an actual fire.

In contrast, the other options do not align with the function of a fire alarm. Normal operation status implies everything is functioning correctly without any issues. A system malfunction would suggest that the fire alarm itself is not operating properly, which would not trigger an alert. Loss of hydraulic fluid is unrelated to a fire alarm and pertains to a different system entirely, thus indicating a mechanical issue rather than a fire hazard.