What is the correct course of action in this situation?

Your answer is correct because maintaining your speed and driving with an increased level of alertness is the right approach in this situation. The bus has stopped at a bus stop, and people are waiting or crossing near it. It's important not to slow down to walking speed unnecessarily, as this could disrupt traffic flow, but you must stay highly alert because pedestrians might step onto the road unexpectedly. This rule helps ensure safety without causing unnecessary delays. Always watch carefully for pedestrians when passing stopped buses.