Even on a road where riding side by side is permitted, three or more ordinary bicycles may not ride abreast.
並進が認められている道路であっても、普通自転車が3台以上並んで走ることはできない。
This statement is TRUE
Explanation
The proviso states that the permission does not apply when three or more bicycles would be riding abreast. So even with the sign, only two bicycles may ride side by side.
Original text
ただし、普通自転車が三台以上並進することとなる場合においては、この限りでない。
Source: Road Traffic Act — 道路交通法 第六十三条の五（普通自転車の並進） · Act No.105 of 1960
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