I think C is the answer; an exception plan is created "during" a stage to address a significant deviation. In that context, a significant issue that requires escalation justifies the need for an exception plan to be created.
The end stage report can be made before an exception plan depending on where the stage is, it is however the board under the ad hoc direction that instructs the PM to create the exception plan so the answe is B
19.4.4, exception plan requires and end stage report
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