As with all other local rules, you must check which of the rules relates to S.
S comes before P, so P is last (rule 3):
F comes before P (rule 2), so F comes first. There is no space in group two; the question says S is the only one there.
F comes before M (rule 2) so M goes in group three.
H must go first, due to rule three. There is no space for H to go with S in group two, due to this question’s restrictions.
R can go either first or third. Either order meets the conditions of the first rule.
E is CORRECT.
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