Discussion

Explanation:

If people face the west, they can be numbered 1-7 (from north to south), as shown: 
7
6
5
4
3
2
1

This is equivalent to a floor arrangement of seven people on seven floors. 
S is third from the north. and R is to the immediate right of S i.e. S = 5 and R = 6.
7
R
S
4
3
2
1

Q is at an extreme and T is his neighbour. Since QT have to be together, Q = 1 and T = 2
V is between T and U. Since T = 2, V = 3, U = 4.

Hence, P takes the only remaining places i.e. 7. Thus, the final arrangement is: 
           (North)  
                P
                R
                S
(West)  U       (East)
                V
                T
                Q
           (South)

Thus, U is fourth from south. 

Hence, option (d).

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