A project sponsor wants to replace the current PM with a more experienced PM. However, removing the current PM might have a negative impact on the team's morale and motivation in a critical stage of…

Avoidance eliminates the threat entirely by changing the plan - actually removing the PM would be avoidance, not providing training.

Exploit is a positive risk response strategy used to maximize opportunities, and it does not apply to threats such as an underperforming PM.

Transfer shifts the risk and its financial or operational consequences to a third party, such as outsourcing project management, which did not happen here.

Risk mitigation involves taking proactive actions to reduce the likelihood or impact of a threat before it materializes. By offering targeted training instead of replacing the PM, the sponsor reduces the risk of underperformance while simultaneously avoiding the secondary risk of harming team morale during a critical phase. This is a deliberate impact-reduction action rather than elimination, transfer, or acceptance of the threat.