The basis on which the requirements should be prioritized in this context is benefit. This means that the requirements should be ranked or ordered based on their value or impact for the stakeholders or the organization. The benefit of a requirement can be measured or estimated by various criteria such as return on investment, customer satisfaction, competitive advantage, etc.

The other options are incorrect because:

Option B is incorrect because cost is not the basis on which the requirements should be prioritized in this context, but a factor that should be considered in prioritizing the requirements. Cost is the amount of money or resources required to implement or maintain a requirement. Cost can affect the feasibility or viability of a requirement.

Option C is incorrect because risk is not the basis on which the requirements should be prioritized in this context, but a factor that should be considered in prioritizing the requirements. Risk is the uncertainty or possibility of a negative or positive outcome or event that may affect a requirement. Risk can affect the urgency or importance of a requirement.

Option D is incorrect because penalty is not the basis on which the requirements should be prioritized in this context, but a factor that should be considered in prioritizing the requirements. Penalty is the consequence or loss that may occur if a requirement is not met or delivered. Penalty can affect the necessity or desirability of a requirement.

References:

BABOK Guide v3, section 10.43: Prioritization

CCBA Exam Questions, question 29