When driving in a residential area, what should you do when approaching children near a school bus?

Answer: B — Stop and observe their movements

In residential areas, especially when near a school bus, stopping and observing the movements of children is crucial for their safety. Children are often unpredictable; they might run out into the road or change directions suddenly as they exit the bus. By stopping, you can ensure that the children are safe and that you are aware of their actions, which greatly reduces the risk of accidents. This practice highlights the importance of vigilance and patience when navigating areas where children are present, as it allows drivers to react appropriately to any unexpected behavior. Driving past at normal speed would not account for the potential dangers that children may pose in such environments. Honking to make your presence known does not guarantee the safety of the children and could even startle them, leading to unpredictable actions. Slowing down and proceeding with caution is a safer approach but does not match the proactive nature of stopping to observe the children. Therefore, stopping and being observant is the best method to ensure both driver and child safety in these situations.