Final answer:
A driver must stop when approaching a school bus that displays flashing red stop lamps and a stop arm and remain stationary until the signals are turned off to ensure the safety of students.
Step-by-step explanation:
A driver on a highway approaching a school bus which is displaying flashing red stop lamps and stop arm must stop until the lights and arm are no longer activated. This is similar to the rule that requires you to stop your vehicle at a red traffic light. It's imperative for the safety of students boarding or exiting the bus. Disregarding this law can lead to severe consequences including traffic citations and endangering the lives of children. Therefore, the correct answer is c. Stop until the lights and arm are no longer activated.