The woman in the blue dress is holding out her arm at oncoming traffic.
A woman wearing a dress is sitting on a bench.
A woman holding out her arm at traffic needs to be standing next to the street.  She is either standing next to the street or sitting on a bench.
exists e1 e2 s1 s2 x1 x2 x3 x4 x5.(n_arm(x3) & of(x3,x1) & n_female(x1) & n_dress(x2) & a_blue(s1) & Theme(s1,x2) & n_woman(x1) & a_out(s2) & Manner(e2,s2) & Theme(e2,x3) & Actor(e2,x1) & v_hold(e2) & Theme(e1,x5) & Actor(e1,x4) & v_oncome(e1) & n_traffic(x5) & (x3 = x4) & in(x1,x2))
exists e1 e2 x1 x2 x3 x4.(on(e2,x4) & n_bench(x4) & Actor(e2,x1) & v_sit(e2) & Theme(e1,x3) & Actor(e1,x2) & v_wear(e1) & n_dress(x3) & (x1 = x2) & n_woman(x1))