What light signal directs a pilot in flight to give way to other aircraft and continue circling?

Answer: C — Steady red

The light signal that directs a pilot in flight to give way to other aircraft and continue circling is indicated by a steady red light. A steady red light serves as an important signal for pilots, signifying that they must yield to other traffic. This means that the pilot should change their altitude or direction to avoid a potential conflict with other aircraft. The instruction to "continue circling" emphasizes that while yielding to the other aircraft, the pilot is not to land or depart, but rather maintain their current flight path in a circular manner until they can safely continue or be directed otherwise. Understanding the specific meanings of light signals is vital for maintaining safety in the airspace, as they help manage traffic effectively and communicate essential information to pilots during flight.