As the Development Team starts work during the Sprint, it realizes it has selected too...

The correct answer is C, because as soon as possible in the Sprint, the Development Team should work with the Product Owner to remove some work or Product Backlog items if they realize they have selected too much work to finish in the Sprint. The Scrum Guide states that “the Development Team may renegotiate the selected Product Backlog items with the Product Owner. If the Development Team realizes it has too much or too little work, it may renegotiate the selected Product Backlog items with the Product Owner. The Development Team may also invite other people to attend to provide technical or domain advice.”