Final answer:
The word 'formulate' means to create or develop a plan. It implies that a plan needs to be carefully thought out and put together.
Step-by-step explanation:
The correct answer is formulate. When the president says, 'We must formulate a plan to deal with this new situation,' they are referring to the process of carefully developing and creating a plan. The word 'formulate' means to create or develop a plan or strategy. It implies that a plan needs to be carefully thought out and put together.