Note: I used the frames explained in the diagram post for all the questions in this game, so will start there.
Based on previous work from Q8 (see forum post), we can eliminate (A), (B), (C) and (D). (E) is left, and it's the answer.
To see why S can't be third:
N L/O S L/O M T P
If S is third, L/O are forced into the second and fourth spots, which pushes N to the first spot, violating the first rule.