What does a sign indicating "two-way traffic" signify?

Answer: C — Oncoming traffic may appear

A sign indicating "two-way traffic" signifies that vehicles will be approaching from the opposite direction. This warning is crucial for drivers to be aware of potential oncoming traffic, allowing them to navigate the road more safely. When a driver sees this sign, it alerts them that they should be cautious and prepared for vehicles that might be in their lane, especially in situations where lanes may be narrow or when merging. Other options may not accurately reflect the implications of the "two-way traffic" sign. The presence of only one lane or one-way traffic would not align with a two-way traffic situation, and while pedestrians' right of way is an important concept in traffic safety, it is not directly related to what is cautioned by a two-way traffic sign.