Number 1 - Fake it! - is the worst advice! When I have explained to the other person that I am still learning their language, there are fewer misunderstandings. This is especially important in the workplace. People normally treat me with kindness and respect when I tell them that I can understand their language more easily if they speak more slowly.
If you are shy, you will need to prepare ahead of time so that you can asking open ended (in contrast to yes or no) questions so that the other person will keep talking.
I tell my students that they are not talking and listening enough if they are not making a lot of mistakes! Let go of the fear of making mistakes - you are expecting too much of yourself if you expect to speak perfectly.