What is the right course of action here?

In the scenario depicted, it’s essential to prioritize the right of way according to German traffic laws.

If you encounter a situation where a cyclist and a car are approaching an intersection, the rules state that generally, vehicles must yield to cyclists, especially if they are already in the intersection or preparing to proceed through it.

Therefore, if the correct answer includes the option of allowing the cyclist to pass, it's vital for ensuring their safety as well as adhering to traffic regulations which promote the protection of vulnerable road users. Meanwhile, being first to proceed could be justified if there were no other vehicles or pedestrians that have the right-of-way.

In this context, a combination of allowing the cyclist to pass and possibly being the first to proceed could be logically sound, depending on the specific traffic flow and rules applicable at that intersection. Understanding these nuances is key to safe driving and compliance with traffic laws.