The C-Peptide fasting test helps distinguish between insulin produced by the body (endogenous) and insulin given as medication (exogenous). It's useful in diagnosing insulinomas and monitoring pancreatic or islet cell transplants. In Type 1 diabetes, C-Peptide is significantly reduced or absent, while in Type 2 diabetes, levels may vary. This test also evaluates beta-cell function and hypoglycemia types. Fasting is required for accurate results.