The project manager needs to share the news with management and the customers with a solution to fix the problem. The project manager should never go to management with a problem without a solution. 1 is incorrect. An immediate reaction to fire the project team member may not be appropriate. In addition, the project manager may not have the authority to release the project team member. 2 is incorrect. Change requests are needed for additions to (or subtractions from) the project scope, not to complete rework. In addition, this answer calls for immediate correction to the software. 3 is also incorrect. Root-cause analysis can be helpful, but it should be completed after informing both management and the customer.