The correct answer is C, because the Development Team should inform the Product Owner so he/she can work with the CEO. The Scrum Guide states that “only the Product Owner has the authority to cancel the Sprint, although he or she may do so under influence from the stakeholders, the Development Team, or the Scrum Master.” Therefore, if the CEO wants to add a “very important” item to a Sprint that is in progress, he or she should communicate with the Product Owner, who can then decide whether to cancel or continue the current Sprint.
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