The correct answer is “D foster an innovative culture and climate that permits experimentation, risk-taking, and failure.”
As mentioned, the product development team has taken the necessary steps before the introduction of the product in the market. They have adequately researched the acceptance of the consumers regarding the product. Despite of this, the product showed poor market performance. In this case, if Rinn fires or demotes the lead then it would further reduce the team morale for innovation. Stepping down from his position is also not a good option as it would also impact the morale of employees. Ignoring product failure would not necessarily keep the team open to innovation as well. In spite of these steps, Rinn should try to foster an innovation culture allowing experimentation, risk-taking, and failure. It would help the employees take risk and come up with innovative product ideas.