I have a 826LE & the engine started to run rough I checked my oil & it appears there is water in the oil . Please advise

Hi,
Most likely it is the result of condensation; or ingestion if you wash it or it has suddenly cooled, and could be through the breather, a gasket or possibly the fuel system. It the crankcase is also overfilled, then it would suggest the fuel system. At any rate you will need to drain the oil and replace it with a good name-brand multi-grade oil suitable for your climate. Good quality oils contain detergent elements that will absorb the water to some extent. The heat of running will also expel condensation.
Since you say it runs rough, I would suspect that it may have gotten there through the fuel system in which case it would be wise to drain it as well.
At any rate it is prudent to change the oil/fuel, run it and expect to need to change it again for the life of your bearing surfaces; they do not care for water and will corrode. Oil will look milky it if the water is emulsified and the water will sink to the bottom of the crankcase if not.
Peace,
Clarke