Conductive hearing loss occurs from either (1) blockage from the external ear or (2) damage to any components of the middle ear; hence the answer here is false. Hearing loss that results from damage to the inner ear or the vestibulocochlear nerve is called sensorineural hearing loss.
The most common cause of sensorineural hearing loss is noise-induced hearing loss due to prolonged exposure to high decibel environments (i.e. machine workers).