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Question:

You see a school bus ahead with its red lights flashing and STOP arm extended. What must you do?

A You must come to a complete stop regardless of which direction you are traveling.
Explaination

You must stop before reaching a school bus which has stopped with its STOP arm extended and red signals flashing. You cannot proceed until the red signals are switched off, the STOP arm is retracted, and the bus has resumed motion. You are permitted to pass if the bus driver waves you through. [Overtaking a School Bus with Red Lights Activated, The Alaska School Bus Stop Law, State of Alaska Driver Manual]