**Leydig Cells:**

Leydig cells, also known as interstitial cells of Leydig, are specialized cells found in the interstitial space of the testes. These cells play a crucial role in the production and secretion of androgens, primarily testosterone.

**Location and Function:**

Leydig cells are located in the connective tissue surrounding the seminiferous tubules, which are responsible for sperm production. They are not present within the seminiferous tubules themselves. Therefore, option C, which states that Leydig cells are present in the interstitial space, is the correct answer.

**Androgen Secretion:**

Leydig cells are responsible for the synthesis and secretion of androgens, particularly testosterone. These androgens are crucial for the development and maintenance of male reproductive structures and secondary sexual characteristics. Testosterone plays a vital role in the development of the male reproductive organs, such as the testes and prostate gland, as well as the growth of facial and body hair, deepening of the voice, and muscle development.

**Regulation of Androgen Secretion:**

The secretion of androgens by Leydig cells is regulated by the luteinizing hormone (LH) secreted by the anterior pituitary gland. LH stimulates the production and release of testosterone from Leydig cells. In turn, testosterone negatively regulates the secretion of LH through a negative feedback loop. This mechanism helps maintain optimal levels of testosterone in the body.

**Role in Sperm Maturation:**

While Leydig cells do not directly participate in the maturation of sperm, the androgens they secrete, such as testosterone, play a crucial role in the process. Testosterone is required for the initiation and maintenance of spermatogenesis, the process by which sperms are produced. It supports the maturation of spermatogonia, promotes the division and differentiation of germ cells, and influences the development of spermatozoa.

In conclusion, Leydig cells are present in the interstitial space of the testes and are responsible for the secretion of androgens, particularly testosterone. They play a vital role in the development and maintenance of male reproductive structures and secondary sexual characteristics, as well as in supporting the process of spermatogenesis.