This question depends on applying the rules and deductions from the main diagram, so here it is again.
A is wrong because mannequin 1 would be wearing all three colors: N, Y and R (the tie).
B is wrong because a mannequin’s hat and jacket have to be different colors (rule 2).
C is wrong because mannequin 1 has to wear either the red hat or the red jacket. Otherwise his hat and jacket would either be the same color, or Y and N.
The latter wouldn’t work because the mannequins can’t wear Y, N and R at the same time.
D is wrong because mannequin 1’s hat and jacket would both be yellow (rule 2).
E is CORRECT.
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