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Solutions
Given:
Eight friends: Rahi, Kirti, Prerana, Kanak, Palak, Pooja, Shail and Prajakta are sitting around a circular table.
Some are them are facing inside the center while some are facing outside the center.
Not more than two persons sitting together are facing the same direction.
1) Pooja sits second to the left of Kanak, who is facing towards the center.
2) Rahi sits third to the right of Pooja.
3) Prerana sits second to the right of Rahi but she is not an immediate neighbor of Pooja.
4) Palak sits to the immediate left of Prerana, who is facing the same direction as Pooja.

5) Shail sits second to the left of Kirti, who faces outside the center.
6) Not more than two persons sitting together are facing the same direction.
7) Immediate neighbors of Prerana are facing the opposite direction. (This eliminates case 2)

Final arrangement

Kirti is sitting fourth to the left of Rahi or Fourth to the right of Rahi.
Hence, both 2) and 3) are correct.