Explanation
= The project manager should follow the issue management process and log the issue in the issue log. The issue log is a tool for documenting and monitoring the resolution of issues that arise during a project. The project manager should also assign the issue to the appropriate project team member(s) who can resolve it.
Closing out the project without ensuring that all stakeholders are satisfied is not a good practice and may lead to customer dissatisfaction, scope creep, or rework. Reporting the issue during the next status meeting or escalating it to the project sponsor and upper management are not the best options, as they may delay the resolution of the issue and increase the risk of project failure. References: (Project Management Professional (PMP) Reference Materials source and documents) A Guide to the Project Management Body of Knowledge (PMBOK Guide) - Seventh Edition, Chapter
8: Project Performance, Section 8.2.3: Issue Log
[PMP Exam Content Outline], Domain II: Process, Task 6: Manage project issues.