C is correct because you are applying the principle of managing by exception, not a activity.
Manage by exception: a project defines tolerances for each objective. PRINCE2 lists
six tolerances that can be set: time, cost, quality, scope, risk, and benefit. An issue
outside an agreed tolerance is called an ‘exception’. When an exception occurs, the
project manager sends an exception report to the project board who decide what to
do.
You are correct, Prince2 is making this difficult for no reason. It's like learning for your driver license. adding horses and pavement roads for no reason LOL
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