There’s a fast, easy way and a hard, tedious way to answer this question. The long and the hard way involves drawing out each scenario. I prefer the fast and easy way.
Ask yourself what the most restricted variables are. Only N and T have special rules. And they share an instrument: the fiddle. They’re the only ones who play the fiddle.
So if the fiddle is in spots 3 and 4 then N and T have to be in spots 3 and 4. Check if it works.
It doesn’t work, because one of N and T has to be in spot 2. So A is CORRECT.
None of the other instruments have any restrictions. S and T could play the guitar in 3 and 4, N and S could play the harp in 3 and 4, V and N could play the lute in 3 and 4, and V and O could play the mandolin in 3 and 4.
All of those scenarios still allow one of N or T to be in the second spot.
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