"Conflict of Interest" Question

As a PM, what will you do if there is a conflict of interest ?

a) Inform to project sponsor so as to remove the reasons causing this conflict of interest.

b) Discuss it with those who would get affected by this and let them decide what to do.

c) As a PM, you will take the responsibility and coordinate with team members for quick resolution.

d) Ignore this conflict of interest.   

 B

What's the source ans?

I doubt C, as PM should take responsibility for managing conflicts..

answer is B. Carefully study page no 493 (conflict interests) in Rita book.  

well..thanks!

just got a dilemma if the question was something of managing stakeholders in which PM is totally responsible..since Q simply says conflict of interest with no additional details