Answer. C: The case presented describes a situation where the organization's recovery point objective is not compliant with a federal regulation.
An infrastructure upgrade (Option A) is a medium/long term mitigation plan, but it does not immediately address the non-compliance issue.
RTO (Option B) is not impacted as explained in the case.
Key takeaway: The case represents a situation where planning exercise has missed a critical continuity requirement. In such cases, it is important that all stakeholders informed. Also, the plan must also be modified to capture the change.