The correct answer is B — Set the velocity to the delivered story points of the last sprint.

Agile velocity is a historical measure, not a target. It represents the amount of work a team actually completed in a previous sprint and should be used to help guide future sprint planning. Teams should not inflate, manipulate, or "game" their velocity; instead, they should use it as a basis for realistic planning.

PMI Agile Practice Guide states:

“Velocity is calculated by totaling the points for all fully completed stories. It is a measure of what the team can complete—not what it hopes to complete—and should be used as an empirical baseline for planning.”

(PMI Agile Practice Guide, Section 5.3 – Estimation and Velocity)

Mike Griffiths further explains:

“Velocity should be based on historical data from previous sprints. Teams should not artificially inflate velocity by changing estimation practices or slicing stories merely to appear more productive.”

(PMI-ACP Exam Prep, Chapter 5 – Adaptive Planning)

Incorrect options:

A promotes splitting for manipulation, not for clarity.

C suggests altering estimation practices for the sake of metrics.

D implies gaming the system to falsely increase velocity.

Answer: B

—