What action should drivers take when they see a school bus with red lights flashing?

Answer: B — Stop immediately

When a school bus has its red lights flashing, it is a clear signal that the bus is either picking up or dropping off children. The law requires drivers to stop immediately when they see these flashing lights. This action is crucial for the safety of children who may be crossing the street to board or exit the bus. Stopping allows children the space and time to safely navigate the area around the bus without the danger of vehicles passing by. The other choices are not appropriate actions in this scenario. Continuing to drive cautiously could endanger children who might unexpectedly cross the street. Honking to alert passengers does not contribute to their safety and can create confusion or panic. Slowing down and watching for children, while cautious, does not comply with the legal requirement to stop when the bus has its flashing lights activated. Following the law by stopping ensures the well-being of young pedestrians during these critical moments.