Have it out with (someone)

Do you know the English expression “to have it out with (someone)“? Read the conversation below. Can you guess the meaning?

Karen: I had it out with Steve last night about him coming home drunk at 3am on the weekends.

Masha: What did he say?

Karen: He argued that he works hard during the week, so he wants to get drunk on Saturday nights. I told him he either comes home earlier, or we break up.

Does it mean:

a) to ask someone something politely

b) to negotiate with someone

c) to argue with so...