Edit: diagram and explanation below are incorrect. The answer is B. However, due to the impending removal of logic games, this explanation is unlikely to receive a correction due to the difficulty of making new diagram images. Some explanations in the comments have answered this.
This question gives us a new rule. To draw it, you should look at our original scenarios and expand on them. These were the scenarios:
This question’s new rule is that LO are together. So in scenario 1, MLO go third, and fill up the group.
Scenario 2 is slightly more complicated. In scenario 2, KLO go together and fill up a group. Which group can they go in? Only 1st. If O goes 2nd, rule 2 says that JK must be together. So we’d have JKLO. But there’s only space for three variables in a group.
So in scenario 1 we have MLO filling group 3, and in scenario 2 we have KLO filling group 1:
In scenario 1, J, K and P are left to place (and JK can’t go together, rule 4). One of J/K must go 1st, because P can’t.
In scenario 2, J and P are left to place. At least one goes 2nd, because every group needs at least one ranger. The one of P and J can go either 2nd or 3rd:
E is CORRECT. P can be third, in scenario 2. (The P/J floating to the right of the diagram indicates it could go in either open group).
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