What is the right course of action?

You chose the correct answers.

In this situation, the yellow diamond sign shows you are on a priority road, and the additional sign indicates the shape and direction of that priority. The green vehicle wants to turn left, and you also want to turn left. The blue vehicle wants to cross your lane from the right.

Since the blue vehicle is coming from a street without priority and wants to enter the priority road, it must yield to you. However, when two vehicles are turning left and facing each other, you can turn before the green vehicle if it is safe and both are not crossing each other's path. Here, you do not need to let the green vehicle go first. So, you must allow the blue vehicle to pass (answer 1), and you may turn before the green vehicle (answer 2).

Always pay attention to the priority road signage and the direction of other vehicles to determine who must yield in these situations.