What is correct in this situation?

This traffic sign indicates that you are leaving a built-up area, in this case, the town of Wilster. The name of the town Wilster is crossed out with a red line, which means the built-up area ends here.

According to German traffic rules, leaving a built-up area means that certain regulations no longer apply, such as the lower speed limits typical for built-up areas (usually 50 km/h). Once you see this sign, higher speed limits allowed outside built-up areas apply, unless other signs indicate otherwise.

The upper part of the sign shows the distance to the next town or destination, Schotten, which is 6 km ahead.

Understanding this sign helps you adjust your driving speed and behavior correctly when exiting towns or cities.