Of course you can't raise the prop with an inboard, because it is a JET... The jet is above the buttom of the hull anyway so you could hit the hull before you hit the jets.
No, an inboard is where the engine sits... "inboard". That has nothing to do with the transmission method.
The vast majority of inboard engines are not jets, and the power is transmitted through a propellor, not a jet.
Stern drives are from an inboard.
Propellor shafts are from an inboard, unless they're from an outboard.
In the case of inboard propellor shafts => SNAP. Which is what I said.
Outboards of course are the only engine which are not fitted inboard. Doh!