What is the right thing to do?

You answered correctly. The “yield” (give way) sign applies to your vehicle, so you must let both the motorcycle and the blue car go first. The blue car is coming from the right and thus has the right of way by the “right before left” rule at the intersection, and the motorcycle is also already in the intersection and has priority. You are not allowed to drive out before the blue car or the motorcycle. This rule ensures a clear and safe order at intersections with a “yield” sign. Remember: always yield to all vehicles on the priority road and to those coming from the right unless signed otherwise.