Hello, An umbilical cord seen around the fetus’ neck early in pregnancy does not increase the likelihood of a problem, and the chance of damaging the baby is very small. Since  the fetus moves a lot inside the uterus, the umbilical cord can get wrapped and unwrapped many times throughout the pregnancy  around the baby.  Since there is less fluid present,the decreased fluid could prevent the fetus from moving and it could also compress the cord because the amniotic fluid usually acts as a cushion, causing concern about a possible cord accident. But you should not worry as  doctors monitor the pregnancy closely during the last months of the pregnancy and would be there to help prevent any complication. Just relax and be in touch with your doctor regularly. Your wife can have normal delivery and cessarian is done only if heartbeat of baby worsens. Thanks