Step 1: This is a negative (EXCEPT) question, so we must find the one statement that is false about managing intrauterine fetal death (IUFD).
Step 2: After fetal death, spontaneous labour occurs in the large majority of women, with about 80% delivering spontaneously within 2 to 3 weeks. The claim that only 50% expel spontaneously in 2 weeks understates this and is therefore the false statement.
Step 3: The other statements are correct. With prolonged retention there is a risk of disseminated intravascular coagulation, so fibrinogen and coagulation should be monitored periodically. If spontaneous expulsion does not occur, medical induction (for example with prostaglandins) is the preferred route.
Step 4: Caesarean section is reserved for special indications only and has a limited role, so option D is also true. The exception is option A.