How should you behave?

Your answer is correct because you should slow down to a walking pace and remain ready to brake when you approach a situation where pedestrians are crossing or about to cross the street.

According to German traffic rules, when pedestrians are close to or starting to cross the road, you must reduce your speed significantly to ensure safety. Slowing to walking pace gives you better reaction time, and being prepared to brake helps you stop quickly if necessary. Continuing at the same speed would be unsafe because pedestrians could suddenly cross.

This rule helps protect pedestrians, especially in residential or built-up areas, where they often have priority and may step onto the road unexpectedly.