Is it appropriate to reduce your speed and allow the two oncoming cars to pass?
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It is true that the two oncoming cars have an obligation to give way to you:
However, the study requirement for a category B driving licence also states that you must demonstrate “good judgement in your interaction with other road-users”.
In this example, the two oncoming cars are much closer to the obstacle than you are. Nobody would benefit if you were to ‘demand your right’ and force either of them to reverse. The quickest and simplest solution for all is for you to reduce your speed slightly and allow the two oncoming cars to pass.
More examples of explanations: