What should you do here?

Your answers to greatly reduce speed and continue driving in your lane are correct because of the following reasons:

When you see a damaged road surface ahead, especially potholes or uneven pavement as shown here, it is important to first greatly reduce your speed. This helps to maintain control of the vehicle and prevent damage to your tires or suspension.

At the same time, you should continue driving in your lane rather than moving to the left. Moving into the opposite lane is dangerous because you could collide with oncoming traffic, which you can see in the rearview mirror there. Staying in your lane ensures safety for yourself and others.

So the rule is: slow down significantly when encountering rough or damaged road sections, and maintain your lane position unless it is clearly safe to change lanes. This way, you keep control and avoid accidents.