My Thoughts

So without looking at coding solution first:
My idea is to attach the object to the Pawn when in range and in front using a key-press
The object that is grabbed needs to be movable
Ideally we’d use the mouse or our central HUD point to select the grabbed object to focus on.

Dropping the object can be done in two ways depends on the UX we are after:
1)The keypress to lift needs to be held down and the moment it let go means we drop the object, this makes lifting something somewhat of an effort and a drag which it realistically should be.
2) One keypress to lift and the second one drops : this is more comfortable for the user and encourages them to carry things effortlessly. to add simulation quality to this we could add a stamina bar.