Given the competitive landscape, the project manager should choose option B: Note this concern in the risk register and meet with the sales team to identify mitigation options factoring in the competitor's offerings. This approach allows the project manager to proactively address the competitive threat by collaborating with the sales team to explore potential mitigation strategies, such as highlighting unique selling points, adjusting pricing strategies, or enhancing marketing efforts. Additionally, noting the concern in the risk register ensures that it is formally documented and can be monitored throughout the project lifecycle.