"give way" = don't get in the way of any car already on the roundabout, or don't impede it.
Yes, give way to any vehicle on the roundabout. Giving way does not necessarily stop. Cars already on the roundabout have right of way, meaning they take precedence over you. It is your responsibility not to impede them. If you can enter the roundabout without colliding or impeding them, you can do so. If this were not the case, then a roundabout could only ever have one car on it at once, which is clearly nonsense. Just imagine some of those enormous roundabouts in Canberra.