"My first step as a product owner would be to understand the exact nature of the gap that caused my client's refusal to accept the release. For example, they may refuse a release because the demo failed unexpectedly or a feature was missing a key component. They may even refuse because they have an intuitive feeling that the release will be unsuccessful.
Depending on the cause, I would facilitate a discussion to identify the steps needed to bridge the gap. I would then ensure that the team adjusts the current sprint plan to account for any necessary new work and that the stakeholder takes on whatever work may be necessary on their side. I would follow up based on the agreed-upon timelines and then schedule a new meeting to review again and plan the release."