Final answer:
The best management option for a gingival cyst of the newborn is observation, since these cysts normally resolve on their own. Other interventions are generally unnecessary unless complications arise.
Step-by-step explanation:
The most appropriate management for a gingival cyst of the newborn is observation (E). Gingival cysts in newborns, also known as Epstein pearls, are benign conditions that often resolve on their own without intervention. These cysts are typically small, white or yellowish nodules found in the mouth, generally on the gums or the roof of the mouth. They are composed of epithelial cells which rarely cause complications and most frequently disappear as the child grows.
Observation is the best management because it avoids unnecessary procedures on an infant, as the cysts are self-limiting and usually cause no discomfort. However, if there are signs of infection or complications, or the cysts do not resolve on their own, then further evaluation and management may be required.