How should you behave?

In the scenario depicted, the presence of pedestrians indicates a potential hazard. According to German traffic rules, when encountering pedestrians, especially in residential areas, you should reduce your speed to a walking pace and remain ready to brake. This ensures the safety of the pedestrians, allowing for quick stops if necessary.

Driving at the same speed in this situation would be unsafe, as it could endanger pedestrians crossing or moving close to the roadway. Thus, selecting both options to slow down and be prepared to brake is crucial for adhering to traffic regulations and ensuring everyone's safety on the road.