Yes. Red has given the inside boat enough room to round in seamanlike manner. Therefore Red has fulfilled her obligations under rule 18.2(b). Blue has not rounded in a seamanlike way and is taking more room than necessary. In colliding with Red, Blue infringes rule 11 (boats on the same tack, overlapped). Red's luffing is moderate and does not infringe rule 16. Red only needs to avoid contact that causes damage in accordance with rule 14. See also Case 25.