The correct answer is B) explain the reporter the newspaper cannot run the story because of perceived bias based on donations, so the article is being reassigned.
The most ethical action for the editor to take is to explain the reporter the newspaper cannot run the story because of perceived bias based on donations, so the article is being reassigned.
Joe, the reporter, has a conflict on interest, that is why the editor has to follow his ethical principles and reassign the article.
Joe was covering the campaign rally for Jiya Patel. The reporter interviewed Jita and many followers to write the article. When it was ready he sent it to the editor for approval but the editor after some research found that the reporter has done considerable donations to Patel's campaign. So the editor made the right decision because the reporter could have biased his article in favor of the candidate.