Final answer:
The statement is True; vehicles must stop for a bus with flashing red lights, to ensure the safety of boarding or disembarking children. Emergency situations may prompt different actions.
Step-by-step explanation:
The statement that you must stop immediately for a bus stopped and displaying red flashing lights is True. This rule is a crucial aspect of road safety. When a school bus has its red lights flashing, it indicates that children are either boarding or leaving the bus, and drivers in both directions must stop their vehicles to ensure safety.
However, there could be exceptional circumstances, such as the provided scenario where a pregnant woman is about to deliver in the back seat of a vehicle at 4 am with no other cars around, and the vehicle is only 2 miles from the hospital. In general, it would be important to follow all traffic laws, but in an emergency situation like this, a different decision might be made in the moment based on the imperative need to get to the hospital quickly for the safety of both mother and child.