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Option 1 : P

As it is not given in which direction is all the towns facing, we consider that all the towns are facing towards the centre of the circle.

1. K is immediately next to neither B nor H.

2. B is exactly opposite P.

3. H has M to its immediate right.

4. K has P to its immediate left.

5. G is located to B’s immediate left.

[ alt="F1 S.Y 13.1.20 Pallavi D3" src="//storage.googleapis.com/tb-img/production/20/01/F1_S.Y_13.1.20_Pallavi_D3.png" style="width: 194px; height: 223px;">

Town ‘P’ is located to M’s immediate right.
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