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You said: B. You're concerned and believe that she might be using her public office for private gain.

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That's it! Well done.

As you correctly determined, it doesn't matter whether she can help this firm comply with the new regulations or not.

What's important here is that she is going to use her public position (as an SGE) for private gain by using inside information to help the firm.

Now, let's examine a few other laws and regulations...