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Solutions
Eight People: R, K, B, D, Q, E, S, and Z
1) K sits at one of the corners.
2) Z sits third to the right of K.
3) There are four persons sitting between Z and Q when counted clockwise from Z.

4) B sits immediate left of Q.
5) D is sitting at one of the corners but is not an immediate neighbour of B and S.

6) Only one person sits between D and E also between R and S.
7) No person sits immediately next to one another according to the alphabetical order i.e. (D – E, Q – R, and R – S do not sit next to one another).
So, the final arrangement,

Checking each option,
1) Only one person sits between Z and R → True
2) E is sitting at one of the corners → True
3) S faces D → False ( S faces Z)
4) R faces B → True
Hence, “Option 3” is not correct according to the arrangement.