Answer C
Let’s follow the cascade of inferences and scenarios that occur if you put H in 2.
1) H goes in 7 because of rule # 2.
2) J goes in 1, because of rule # 5, and then in 5, because of # 1.
3) We ask ourselves where can the chunk of HM go (rule #4) and end up with two frames: one with M in 3 and another with M in 8.
4) Once we see that our doubles are all used up and we have to use the remaining elements, we use POE to get to answer C.
Frames:
1_2_3_4_5_6_7_8
J_H_?_?_J_?_H_M
J_H_M_?_J_?_H_?
G, L, O are all floating.