Is this grammar LR(1)? A bit confused about whether this grammar is ambiguous or not

C' -&gt; C
C -&gt; d C u C
C -&gt; d C
C -&gt; ε


I tried building the DFA for this but I get this in one of the states:

C -&gt; d C DOT u C, $
    C -&gt; d C DOT, $


Isn't this a shift-reduce conflict, so surely it means the grammar is not LR(1)? Or does it reduce regardless since $ and u are both in the follow set of C? Is this not a reduce-reduce conflict since it goes to C regardless?
This grammar (which isn't ambiguous) isn't LR(k) due to the right-recursion, thus it isn't LR(1).