This is a tricky question. It's too time-consuming to try out each option, but one could do a light trial and error by sketching out something like this (for A - C, in reverse):
P G
G P
G P
__ __ __ __ __ __ __
1 2 3 4 5 6 7
and then envision - and this is the key - whether LO is locked into one place.
I initially predicted slot 2, since that leaves only one place for the LO chunk, slots 3 and 5 (since the chunk can't go in 6 & 7 as there'd be no room for N). The answer instead is the other "side" of 2. (2 is the "reverse" of 5 here since G and P are in a reversible chunk that has two spaces in the middle).
With G in 5, P must be in 2, LO can only go in 3 and 4.