Seven friends, A0, B0, C0, D0, E0, F0 and G0 are sitting

Solution

 Only two people sit to the right of E0. This means E0 is sitting at the third place from the right end.  Only two people sit between E0 and A0 and B0 sits second to the right of A0.  D0 sits to the immediate right of F0. Thus, D0 is at the extreme right end.  C0 sits at one of the positions to the left of G0. Thus, G0 must be sitting between A0 and B0. Final arrangement is as shown below: From the above arrangement it is clear that, C0 sits at the extreme left end of the line. Hence, the correct answer is (D).