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Option 3 : D

According to the given information-

1) B lives on 4th floor.

Floors

Persons

5

 

4

B

3

 

2

 

1

 

2) A is not an immediate neighbour of B and also not lives on the bottom floor.

Floors

Persons

5

 

4

B

3

 

2

A

1

 

3) D neither lives on the top floor nor bottom floor.

The final arrangement is given below

Floors

Persons

5

C/E

4

B

3

D

2

A

1

E/C

Hence, D lives on the 3rd floor.

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