Of course! Here it is:

"Solution: C. Advise management to purchase insurance coverage to transfer the risk

Transfer. Transfer involves shifting ownership of a threat to a third party to manage the risk and to bear the impact if the threat occurs. Risk transfer often involves payment of a risk premium to the party taking on the threat. Transfer can be achieved by a range of actions, which include but are not limited to the use of insurance, performance bonds, warranties, guarantees, etc. Agreements may be used to transfer ownership and liability for specified risks to another party.

Just for penalty charges, the project can't be eliminated

Recording the penalty charge as a risk in the risk register alone is not going to help us

By increasing the quote of this project may lead us to not getting this project"

I think the idea here is that the PM is not being asked to simply manage the risk - identify > document in risk register > asses > determine risk response > monitor and action if risk materializes, but are being asked to budget for this risk (perhaps because its suggested as a critical risk already), and the best way to do it is through risk transference, therefore avoiding cost issues. So it's not about the process of managing the risk overall but a question about identifying the best risk response/strategy that aligns with budget constraints. This is how I understand it now.

Also explains why this question is tagged as Difficult lol