Final answer:
Cryptococcus neoformans, a yeast, is the organism that can be encapsulated and is visualized using India ink staining, which is a negative staining technique showing the capsules as clear halos around the cells.
Step-by-step explanation:
The organism that is encapsulated and can be visualized with India ink is the yeast Cryptococcus neoformans. India ink staining is a type of negative staining technique which stains the background but not the cells or their capsules. As the ink does not penetrate the capsule, it leaves a clear halo around each cell, thereby making the polysaccharide capsule around the yeast cells visible against the dark background.
During laboratory processes, when India ink is applied to a specimen, it provides a stark contrast that helps in the identification of encapsulated organisms like Cryptococcus neoformans. Such a technique is crucial in medical microbiology for diagnosing infections caused by these encapsulated organisms.