Dereferencing just means accessing the memory value at a given address. So when you have a pointer to something, to dereference the pointer means to read or write the data that the pointer points to.

In C, the unary * operator is the dereferencing operator. If x is a pointer, then *x is what x points to. The unary & operator is the address-of operator. If x is anything, then &x is the address at which x is stored in memory. The * and & operators are inverses of each other: if x is any data, and y is any pointer, then these equations are always true:

*(&x) == x
&(*y) == y

A null pointer is a pointer that does not point to any valid data (but it is not the only such pointer). The C standard says that it is undefined behavior to dereference a null pointer. This means that absolutely anything could happen: the program could crash, it could continue working silently, or it could erase your hard drive (although that's rather unlikely).

In most implementations, you will get a "segmentation fault" or "access violation" if you try to do so, which will almost always result in your program being terminated by the operating system. Here's one way a null pointer could be dereferenced:

int *x = NULL;  // x is a null pointer
int y = *x;     // CRASH: dereference x, trying to read it
*x = 0;         // CRASH: dereference x, trying to write it

And yes, dereferencing a null pointer is pretty much exactly like a NullReferenceException in C# (or a NullPointerException in Java), except that the langauge standard is a little more helpful here. In C#, dereferencing a null reference has well-defined behavior: it always throws a NullReferenceException. There's no way that your program could continue working silently or erase your hard drive like in C (unless there's a bug in the language runtime, but again that's incredibly unlikely as well).