Final answer:
The newly licensed nurse demonstrates an understanding of incident reports by knowing that they should complete an incident report for any unexpected client occurrence, not include it in the medical record or ask a risk manager to complete it.
Step-by-step explanation:
When a newly licensed nurse shows understanding of the teaching about incident reports, they should recognize that an incident report should be completed for any unexpected client occurrence. These reports are used internally for quality improvement and are not part of the client's medical record. Therefore, the correct understanding is indicated by option C: I should complete an incident report for an unexpected client occurrence. Neither a copy of the incident report nor the documentation of its completion should be included in the client's medical record, which addresses options A and B as incorrect. The risk manager is not the person to complete such reports; it is the responsibility of the staff involved in or witnessing the incident, which makes option D incorrect.