Do you have to stop for a school bus with flashing red lights?
Stop (at least 20 m if behind it) and stay stopped until the lights stop or the bus moves
You must stop for a stopped school bus with its upper red lights flashing, whether you are behind it or meeting it, unless a median separates you. Coming from behind, stop at least 20 metres away and do not move until the lights stop flashing or the bus moves.
Why the other answers are wrong
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Slow to 40 km/h and pass with caution
There is no slow and pass option here. Upper red lights flashing means a full stop. You may be mixing this up with lower school-zone speed limits, which are about speed, not stopping.
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Stop only if you are directly behind the bus
Traffic meeting the bus from the front must stop too. The one exception is a median, a physical barrier between the two directions, so look for that barrier: no median means both directions stop.
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Continue, only the lane beside the bus must stop
The rule goes by direction of travel, not by lane. It applies on any road, whatever the number of lanes or the speed limit, so sitting in another lane does not let you keep going.
Quick way to remember
Flashing upper red lights apply to traffic in both directions (no median).
Based on the official Ontario MTO Driver's Handbook.
Reading it once is not enough
Drill this question in a scored round and find out what else you are shaky on.
Practise Rules of the Road: The Basics