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The driver of the animal-drawn vehicle:

AMust yield the right-of-way to the bicycle.Correct
BMust proceed before the bicycle.
CMust proceed first.
Explanation
In the absence of priority regulating signage, the general rule of priority to the right applies. As the bicycle is to the right of the animal-drawn vehicle at the intersection, the latter has the obligation to yield the right-of-way to it. The remaining options are incorrect because the driver of the animal-drawn vehicle does not have priority over the bicycle, and must wait for it to complete its maneuver before proceeding.
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