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The Diverting Approach Sign is used in rail operations to alert train crew members about an upcoming diversion. This sign is critical because it indicates that the train is approaching a point where it may need to change tracks. The sign instructs the engineer to proceed prepared to stop at a Working Limits Stop Sign that may follow. This is particularly important for ensuring the safety of operations, as it highlights the need for the crew to be vigilant and ready to respond to any changes in track conditions or instructions that may require a halt.

In this context, the other scenarios do not accurately reflect the meaning of the Diverting Approach Sign. While proceeding with caution or continuing at normal speed may apply in other situations, the nature of this particular sign is to inform the crew about the possibility of needing to stop at a sign indicating working limits, which is crucial for maintaining safety and operational integrity. Therefore, the emphasis on preparing to stop is key when interpreting the Diverting Approach Sign.