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When a school bus has stopped on a two-lane road and is loading or unloading students, you must:

  1. Accelerate to pass the bus quickly

  2. Stop only if you are directly behind the bus

  3. Stop whenever the red octagonal stop-sign arm extends from the left side of the bus

  4. Ignore the bus and continue driving

The correct answer is: Stop whenever the red octagonal stop-sign arm extends from the left side of the bus

When a school bus has stopped on a two-lane road and is loading or unloading students, it is crucial to always stop whenever the red octagonal stop-sign arm extends from the left side of the bus. This is because the extended stop-sign arm is a signal for all vehicles on the road to stop. By obeying this signal, you help ensure the safety of the children boarding or exiting the bus. It's important to remember that the safety of the children is a top priority in this situation.