What is correct in this situation?

In this scenario, the "right-before-left" rule applies, meaning that vehicles on the road to your right have the right of way. The road you are approaching is likely an intersection where this rule is in effect. The traffic sign displayed indicates a potential intersection where drivers should be cautious, as the right-of-way rules dictate that you yield to the incoming traffic from the right.

Additionally, if there are any markings indicating a traffic-calming zone or other relevant signs, it's crucial to be aware of them as they might affect your driving behavior. Always yield to those already on the main road if indicated by signs or road markings. Understanding these rules helps in maintaining safety and order on the road.