In this situation, the driver of the blue vehicle...

In this situation, the driver of the blue vehicle...
A)Will obey the STOP, as it is the most restrictive.
B)Will obey the GIVE WAY because it is a vertical sign and takes priority over a road marking.Correct
C)Will obey the GIVE WAY if turning right and the STOP if continuing straight or turning left.
In case of apparent contradiction between signs, we apply the order of priority among them.
When signs are of different types, we must follow the order of priority between signs:

1st Officers
2nd Circumstantial signs and beaconing
3rd Traffic lights
4th Vertical signs
5th Road markings
When signs of the same type contradict each other, we must follow the most restrictive sign.
In the question, we have a vertical sign (give way) and a road marking (stop). Since they are of different types, by order of priority we follow the vertical give way sign.