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What is the water-cooled engine in the Audi A3?

I've heard that the Audi A3 has a water-cooled engine, but I'm not sure what that means or why it's beneficial. Can you explain it to me?

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The water-cooled engine in the Audi A3 refers to the use of liquid coolant to regulate the engine's temperature instead of air. This is beneficial because it allows for more precise temperature control and can result in better performance and fuel efficiency.

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