B. Cost tolerance can be fixed or flexed.
In an Agile context, the setting of the cost tolerance for a project can be fixed or flexed, depending on the specific circumstances of the project.
Agile methodologies, such as Scrum, emphasize the importance of flexibility and responding to change, and this is reflected in the concept of cost tolerance. Cost tolerance refers to the amount of deviation from the planned budget that can be tolerated without requiring a change to the project baseline.
This must be corrected. Cost and time tolerance is fixed. This are the very basics of PRINCE2 Agile. If you have this wrong, then really open your book and start learning instead of taking the exam.
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