Final answer:
Impetigo is the inflammatory condition with papules and pustules, characterized by the formation of vesicles, pustules, and sometimes bullae. Nonbullous impetigo leads to encrusted sores, while bullous impetigo results in larger, draining, encrusted lesions.
Step-by-step explanation:
The inflammatory condition with papules and pustules is impetigo. Impetigo is a skin infection that causes the formation of vesicles, pustules, and sometimes bullae. In nonbullous impetigo, the vesicles and pustules rupture and become encrusted sores, while in bullous impetigo, the bullae fill and rupture, resulting in larger, draining, encrusted lesions.