While caring for a toddler receiving oxygen via face mask, the nurse observes that the child's lips and nares are dry and cracked. Which intervention should the nurse implement?

A. Petroleum jelly should not be used around the nose of a toddler receiving oxygen due to the risk of aspiration and the potential for oxygen to ignite the jelly. B. Topical lidocaine is not appropriate for cracked lips, as it can cause numbness and possibly interfere with the child's ability to protect their airway. C. Asking the mother is a good communication approach, but the nurse should also take immediate action to address the dryness using an appropriate lubricant. D. Use a water-soluble lubricant on affected oral and nasal mucosa is the most appropriate intervention, as petroleum jelly can be harmful if inhaled, and a water-soluble lubricant is safer for use in the nasal and oral areas, especially in young children.