Final answer:
The best option for an employer when an employee cannot perform job functions due to a severe ankle sprain from a company event is to (Option b) provide paid leave until the employee recovers, considering the fairness and potential legal obligations.
Step-by-step explanation:
When an employee suffers a severe ankle sprain at a company-sponsored activity and is unable to perform essential job functions, the best course of action for an employer, especially one with limited staffing, might not be immediately clear. However, option B) Provide paid leave until the employee fully recovers could be the most supportive and potentially legally compliant response, taking into consideration regulations such as the Americans with Disabilities Act (ADA) which could apply depending on the specifics of the situation. Terminating the employee could lead to legal complications, and without the ability to offer a light-duty role, paid leave offers time for recuperation without loss of income for the employee, as well as maintaining good employer-employee relations and potentially avoiding high turnover costs.