This road sign means:

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Be prepared to stop if necessary.
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Slow down and be prepared to stop.
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Stop and yield to pedestrians and cross traffic.
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None of the other answers is correct.
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Explanation
An 8-sided red STOP sign indicates that you must come to a complete stop. Stop at the stop line, or before entering the crosswalk. If a stop line or crosswalk is not painted on the street, stop before entering the intersection. Always ensure the intersection is clear of any potential hazards before proceeding.
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