Another local rule, another local diagram. We now know that O is above L and L is above H.
You can draw that rule. Or you can just insert each letter on the diagram; there’s only one way to put them in that order.
You’re not done yet. When building local diagrams, focus on the most restricted variable. In this game, it’s F, which has two rules.
F has to go with M, and the only place you can fit them is on the bottom shelf.
Now we only have G and K left to place. K could go either on the top or middle shelf, and G could go anywhere. Just remember the extra shelf goes either in the middle or on the bottom.
A, B and D are wrong because G can still go anywhere. It could go on the top if K went on the middle, or on the middle or bottom if K went on the top.
E is wrong for the same reason. G could go on the top, and K would go on the middle shelf.
C is CORRECT. H and M are always on the bottom.
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