The project management team defines which activities are external to the project. An external dependency is any nonproject activity that is external to the project but has a direct impact on the project activities. An external dependency may be an inspector or any agency that may have to give prior approval before the project can move forward. These dependencies are external to the organization and are determined by the project management team to find which dependencies are external all through the process of sequencing the activities.

Answer option C is incorrect. The project manager may be part of the project management team, but this is not the best choice.

Answer option A is incorrect. The project team does not define this relationship.

Answer option B is incorrect. The project sponsor would not define the external dependencies.