What is correct in this situation?

This sign indicates that you are leaving the built-up area of Wilster and heading towards Schotten, which is 6 kilometers away. The red line over the name "Wilster" signifies the end of the built-up area. This typically means that the traffic regulations that apply within the city limits no longer apply, and you may encounter different speed limits or other traffic rules that are typically enforced outside of urban areas. Understanding this transition is essential for safe driving as it affects traffic speeds and behavior.