encode binary to audio python or C

From your comments, you want to process the binary data bit by bit, turning each bit into a high or low sound.

You still need to decide exactly what those high and low sounds are, and how long each one sounds for (and whether there's a gap in between, and so on). If you make it slow, like 1/4 of a second per sound, then you're treating them as notes. If you make it very fast, like 1/44100 of a second, you're treating them as samples. The human ear can't hear 44100 different sounds in a second; instead, it hears a single sound at up to 22050Hz.

Once you've made those decisions, there are two parts to your problem.

First, you have to generate a stream of samples—for example, a stream of 44100 16-bit integers for every second. For really simple things, like playing a chunk of a raw PCM file in 44k 16-bit mono format, or generating a square wave, this is trivial. For more complex cases, like playing a chunk of an MP3 file or synthesizing a sound out of sine waves and filters, you'll need some help. The audioop module, and a few others in the stdlib, can give you the basics; beyond that, you'll need to search PyPI for appropriate modules.

Second, you have to send that sample stream to the headphone jack. There's no built-in support for this in Python. On some platforms, you can do this just by opening a special file and writing to it. But, more generally, you will need to find a third-party library on PyPI.

The simpler modules work for one particular type of audio system. Mac and Windows each have their own standards, and Linux has a half dozen different ones. There are also some Python modules that talk to higher-level wrappers; you may have to install and set up the wrapper, but once you do that, your code will work on any system.

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So, let's work through one really simple example. Let's say you've got PortAudio set up on your system, and you've installed PyAudio to talk to it. This code will play square waves of 441Hz and 220.5Hz (just above middle C and low C) for just under 1/4th of a second (just because that's really easy).

import binascii

a = open('/Users/kyle/Desktop/untitled folder/unix commands.txt', 'r')
c = a.read()
b = bin(int(binascii.hexlify(c), 16))

sample_stream = []
high_note = (b'\xFF'*100 + b'\0'*100) * 50
low_note = (b'\xFF'*50 + b'\0'*50) * 100
for bit in b[2:]:
    if bit == '1':
        sample_stream.extend(high_note)
    else:
        sample_stream.extend(low_note)

sample_buffer = b''.join(sample_stream)

p = pyaudio.PyAudio()
stream = p.open(format=p.get_format_from_width(8),
                channels=1,
                rate=44100,
                output=True)
stream.write(sample_buffer)

So you want to transmit digital information using audio? Basically you want to implement a MODEM in software (no matter if it is pure software, it's still called modem).

A modem (MOdulator-DEModulator) is a device that modulates an analog carrier signal to encode digital information, and also demodulates such a carrier signal to decode the transmitted information. The goal is to produce a signal that can be transmitted easily and decoded to reproduce the original digital data. Modems can be used over any means of transmitting analog signals, from light emitting diodes to radio. [wikipedia]

There are modems everywhere you need to transmit data over an analog media, be it sound, light or radio waves. Your TV remote probably is an infrared modem.

Modems implemented in pure software are called soft-modems. Most soft-modems I see in the wild are using some form of FSK modulation:

Frequency-shift keying (FSK) is a frequency modulation scheme in which digital information is transmitted through discrete frequency changes of a carrier wave.1 The simplest FSK is binary FSK (BFSK). BFSK uses a pair of discrete frequencies to transmit binary (0s and 1s) information.2 With this scheme, the "1" is called the mark frequency and the "0" is called the space frequency. The time domain of an FSK modulated carrier is illustrated in the figures to the right. [wikipedia]

There are very interesting applications for data transmission through atmosphere via sound waves - I guess it is what shopkick uses to verify user presence.

For Python check the GnuRadio project.

For a C library, look at the work of Steve Underwood (but please don't contact him with silly questions). I used his soft-modem to bootstrap a FAX to email gateway for Asterisk (a fax transmission is not much more than a B/W TIFF file encoded in audio for transmission over a phone line).