What is correct?

In this traffic situation, the traffic officer is controlling the intersection. When a traffic officer raises their arm upward like shown here, it means stop for all vehicles facing the officer's side, but vehicles coming from the left and right (perpendicular to the officer's raised arm) may proceed.

The yellow car must leave the crossroads first because it has the right to go straight through the intersection while the officer signals stop for others going straight through or turning from your direction.

You, who want to turn right, must get ready to proceed by waiting for the right moment when the officer signals you to go. You cannot turn immediately, but you also should prepare to move once the officer allows it.

You cannot turn now because the officer’s current signal means stop for you. Only once the officer lowers their arm or gives another signal allowing you to move can you turn.

So the correct interpretation is that the yellow car must proceed first, and you must prepare to proceed but cannot go yet. This is why options 1 and 2 are correct, and option 3 is incorrect. Understanding manual signaling by officers is crucial when traffic lights or signs do not apply or are overridden.