Extend your arms straight.

Literal

Arms [object-を] straight extend-[soft imperative-なさい].

An exercise or PE instruction. 伸ばす ('to extend, stretch out') is the standard verb for stretching a body part or a line/object. まっすぐ is the adverb 'straight, directly'. ~なさい is the soft imperative typical of exercise instruction or parental directions.