Agile empowers teams to beself-organizing and self-managing. According to thePMI Agile Practice Guide (Section 5.6)andMike Griffiths' PMI-ACP Exam Prep Book (Chapter 7: Problem Detection and Resolution), the agile coach or Scrum Master facilitates the process but shouldencourage the team to resolve internal issues themselves. This develops ownership, team maturity, and accountability. The team coach's role is tosupport, not solve. Escalating issues unnecessarily or bypassing the team undermines agile principles. Therefore,Option Cis correct: the coach should encourage the team to address and resolve the issue internally, stepping in only if the team cannot resolve it themselves.