This sign indicates...
A)priority over the opposite direction.Correct
B)that you cannot pass when vehicles coming in the opposite direction would be forced to stop.
C)that you must always stop.
When approaching a narrow passage we may find, depending on which side we approach from, one of the two signs below.
The first one, which is the one in the question, indicates that we have priority over vehicles travelling in the opposite direction.
The second one, on the other hand, would indicate that the opposite direction has priority and forbids us from entering the narrow passage as long as it is not possible to cross it without forcing vehicles travelling in the opposite direction to stop.