The project manager should evaluate the risk with the team and update the issueing to address the concerns of the stakeholders and local businesses.
This concern is a potential risk that could affect the project's reputation, stakeholder satisfaction, and profitability. The project manager should evaluate the risk with the team and update the issue log, which is a tool for documenting and monitoring the resolution of issues that arise during the project. The issue log should include information such as the issue description, the priority, the owner, the status, and the actions taken. The project manager should also communicate with the stakeholders and the local businesses to address their concerns and seek a mutually beneficial solution. The project manager should not ignore the concern, as it could escalate into a bigger problem. The project manager should not discuss the concern with the local business owners alone, as this could bypass the stakeholders and create more conflicts. The project manager should not update the key risks and perform a quantitative risk analysis, as this is a time-consuming and complex process that may not be necessary for this type of risk. The project manager should not adjust the construction work hours to after business hours, as this could incur additional costs, disrupt the project schedule, and affect the workers' safety and productivity. Reference: PMI, 2017. A Guide to the Project Management Body of Knowledge (PMBOKGuide) - Sixth Edition. Newtown Square, PA: Project Management Institute, Inc., pp. 115-116, 408-4091

If the project manager realizes that some risks have not been updated recently, they should review the risk register to check for new risks and ensure that all risks are accurately documented and updated.
The risk register is a document that contains information about the identified risks, their analysis, and their response plans. It is updated throughout the project life cycle as new risks emerge, existing risks change, or risks are closed. The project manager should review the risk register regularly to ensure that the project data is accurate and reflects the current risk situation. Reviewing the risk register also helps the project manager to identify any new risks that may have occurred since the last update, and to plan appropriate responses for them. Reference: PMI, Project Risk Management, 2nd edition, 2019, p. 67-681

According to the PMI-RMP Exam Content Outline1, one of the domains of the PMI-RMP certification is risk monitoring and reporting. This domain includes tasks such as "monitor and report on risk metrics and trends",
"monitor the status of risk response activities and update risk register and risk report accordingly", and
"monitor and control project contingency and management reserves". These tasks imply that the risk manager should regularly check and report on the status of risks identified according to their prioritization (B), monitor the status and oversee execution of the risk response plan for each identified risk ©, and ensure management reserves are sufficient to cover the mitigation plans for all identified risks (D). These actions will help the risk manager to ensure the risk management plan remains effective during the project timeframe. Therefore, the best answers are B, C, and D.
References: 1: PMI-RMP Exam Content Outline, pages 9-10.