“Don't try the paranormal until you know what's normal.” - Granny Weatherwax
It seems to be the latter option.
From the Rules Reference, page 17.
The Crown Regent title card can be used to redirect a single challenge each round. This ability is used after a challenge is initiated, before any reactions to that challenge’s initiation can be triggered.
The player initiating the challenge cannot change which characters he or she has declared, or the challenge type that has been announced, when a challenge has been redirected.