When cross-functional approval is blocked by conflicting stakeholder needs, the project manager should facilitate direct stakeholder engagement to understand concerns, clarify requirements, and work toward alignment. Arranging a meeting with both departments (C) is the best step because it enables structured conflict resolution: identify underlying interests (compliance, controls, reporting needs, impacts), explore options, and reach a shared solution acceptable to both parties. Jumping to "find a compromise" (A) may be premature without fully understanding each side's constraints; compromise should emerge from informed discussion. Going straight to the sponsor (B) is escalation and is more appropriate only if the departments cannot resolve the conflict or if a decision exceeds their authority. Merely assessing risk and advising of delays (D) is passive and does not remove the approval impediment. Effective stakeholder management requires active facilitation, negotiation, and transparent communication-especially when departmental priorities conflict and approvals affect the critical path.