We investigated terahertz (THz) magneto-optical properties of a ferrofluid and a ferrofluid-filled photonic crystal (FFPC) by using the THz time-domain spectroscopy. A magnetoplasmon resonance splitting and an induced THz transparency phenomenon were demonstrated in the FFPC. The further investigation reveals that the induced transparency originates from the interference between magnetoplasmon modes in the hybrid magneto-optical system of FFPC, and the THz modulation with a 40% intensity modulation depth can be realized in this induced transparency frequency band. This device structure and its tunabilty scheme will have great potential applications in THz filtering, modulation and sensing.