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1. R lives on an odd number floor but does not live on 3rd floor 2. T lives immediate below R. 
3. More than two persons live between S and T. 4. There are six persons live between M and S. 
5. P lives immediate above Q but live below N. 6. O does not live above R. 7. Q does not live immediate above S. 
So CASE2 is cancelled out. 
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