Hi guys,
In one of the recent games, I've encountered the following situation:
1. Red cavalry unit fights the blue infantry unit (all units are 1 stand only).
2. Blue infantry unit looses combat and retreats.
3. Red cavalry unit pursues, but the green infantry unit (enemy) is (partially) in its path.
What would be the correct option? In the above mentioned game, we played 3C.
3A: Red unit stops when it comes to contact with green unit.
3B: Red unit has to move directly forward, doesn't stop in contact with the green unit and is brought into combat with both units (blue and green), having green unit in the side (reducing # of attacks of the red unit).
3C: Contact with green unit (not only corner-to-corned, but edge-to-edge) is considered to prevent the red unit to move directly forward so the red unit can move in a different way according to the section of the rules below the image.

"Occasionally, you will find that no stands can pursue
by moving directly forward. When this happens take
the stand that is closest to the retreating unit and
move it against the closest accessible edge of the
closest enemy stand. In this case, place the stand
centre-to-centre where possible in the same way as if
it were charging – though note that it does not
necessarily have to see its enemy. Note also that the
stand still needs a clear path past other units or
obstructions. Having placed the first stand, position
the remaining stands as described above"
Thanks!