What statement is true about red bouts under the inland rule?

Under the Inland Navigation Rules, a red light displayed on a vessel indicates that it is the stand-on vessel, meaning it has the right of way in a crossing situation. If two vessels are approaching each other with red lights visible, it signifies that they are on a collision course, and each vessel must take action to avoid a collision. It is essential for vessels to understand these signals to navigate safely and effectively.