Agile empowers teams to be self-organizing and self-managing. According to the PMI Agile Practice Guide (Section 5.6) and Mike Griffiths ' PMI-ACP Exam Prep Book (Chapter 7: Problem Detection and Resolution), the agile coach or Scrum Master facilitates the process but should encourage the team to resolve internal issues themselves. This develops ownership, team maturity, and accountability.

The team coach’s role is to support, not solve. Escalating issues unnecessarily or bypassing the team undermines agile principles. Therefore, Option C is correct: the coach should encourage the team to address and resolve the issue internally, stepping in only if the team cannot resolve it themselves.