B - is the Project Manager responsibility to provide direction to the team and not the Project Sponsor. B is not the answer.
C - there is nothing mention in the question that the team are in conflict. C is not the answer.
D - is the Project Manager responsibility to resolve the issue first and the last thing you want is to go to the steering committee for their input, asking for more time, asking for more money, etc. D is not the answer.
A - creating a short-term goal can create a sense of achievement when completing a task. Then build it up to medium-term and finally to long-term goal to complete the project. By doing these steps this will avoid the team being lost, confused, and provide the team to get into work flow. The right answer is A.