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The red light is the immobiliser light, sounds like the immobiliser receiver in the steering column is not recognising the key.
If the key also does not unlock the car it sounds like the key is not matched to the car.
Unfortuantelty you will probably need to program the key to the car again to get it to recognise it or try a spare key. You have changed the battery so that's already done (presuming it is the right way round). I have the Owners Club Manual for this at home so can look to see how easy it is to program in a key but I think it needs to be on Clip (the diagnostics tool) to do it.
May need a visit to a dealer or garage for a quick solution. If you think the key is faulty don't reprogram that in, get a (two?) totally new ones.
Currently in 4cv's garage:
1956 4CV Sport De Luxe, Clio x 1 (Sold 1 at 155000 miles, other at 12 years and bought another) and a Laguna GST, Vel Satis ZE, Megane ZE