Answer: Before you can connect the UTI with the Foley catheter, the physician must link the infection to the device. You don't have that support in the medical record, or in his note about the bladder problem "with" an indwelling catheter (the term "with" doesn't establish a cause and effect relationship, or indicate the urinary catheter caused the UTI). Your description of the situation also doesn't note whether the physician was asked about the cause of the UTI.
Considering these factors, your best choice for principal diagnosis is 599.0 (Urinary tract infection; site not specified). That leads you to an assignment of MS-DRG 690 (Kidney and urinary tract infections without MCC).