The correct answer is C - Ask the team to discontinue developing the component. Agile empowers the product owner to make real-time scope decisions based on changing customer needs. If a feature no longer delivers value, continuing it violates agile's principle of maximizing value and minimizing waste-even if partially complete.
From the PMI Agile Practice Guide:
"Agile welcomes changing requirements-even late in development. The product owner's role is to ensure that the team focuses on work that delivers the most business value." (PMI Agile Practice Guide, Section 3.4 - Value Prioritization and Scope Management) Mike Griffiths affirms:
"If a component is deemed unnecessary, even mid-development, the product owner has the authority to reprioritize the backlog and halt the work. Agile values responding to change over following a fixed plan." (Mike Griffiths, PMI-ACP Exam Prep, Chapter 3 - Value-Driven Delivery) Incorrect options:
* A suggests unnecessary bureaucracy; agile favors decentralized, empowered decision-making.
* B ignores the updated feedback and would create waste.
* D is redundant since the sponsor already communicated disinterest; the product owner can act.