What do you do when you see this traffic sign?

This sign indicates that you have priority over oncoming traffic at a narrowing in the road. However, you can only use your priority if the narrowing is actually clear. You still must drive carefully and be prepared to stop if the situation changes or if another vehicle cannot safely yield. The correct approach is to proceed with caution and not assume absolute right of way, even though you have the priority. In your answer, both selected choices are correct: you must only take precedence when it is safe, and you must still be ready to stop if needed. This ensures traffic safety and smooth passage in narrow sections.