The customer determines the requirements for the project. After all, the project is completed for the customer. 1 is incorrect because the project manager does not determine the requirements, but instead manages the methods to achieve them. 2 is incorrect because the project sponsor does not set the requirements for the project. 3 is also incorrect. The performing organization’s management does not set the requirements for the project. Management may have input to the process, but ultimately the customer sets the requirements of the project.