What is the right course of action?

Your choices 1 and 2 are correct.

Traffic sign 1 warns of an uncontrolled intersection ahead, so the basic rule “right before left” applies (unless another sign like “give way/stop” changes it). Because the bus is coming from your right, it has priority over you. Since you are turning left, you must also yield to oncoming traffic going straight or turning right; that’s why you must let the motorcycle pass first.

After the motorcycle has cleared, you may go before the bus only if the bus is still waiting and you can complete your left turn without forcing it to brake or change course. Rule of thumb: when turning left, yield to oncoming traffic; and always give way to traffic coming from the right at an unsigned intersection.