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When a school bus has stopped and is displaying flashing red warning lights:
All traffic must stop
All vehicles going in the opposite direction may proceed
All vehicles traveling in the same direction may proceed
All vehicles have the right of way
The correct answer is: All traffic must stop
When a school bus has stopped and is displaying flashing red warning lights, all traffic in both directions must stop. This means that option B and C are incorrect because they refer to only one direction of traffic. Option D is incorrect because it implies that all vehicles have the right of way, but in this situation, the school bus and the children crossing the road have the right of way. Therefore, the correct answer is A all vehicles must stop. This is to ensure the safety of the children crossing the road and to follow traffic laws.