This difficult probability question requires that you consider each of 4 possible scenarios. For purposes of illustration let's assign people letters and seats numbers and say that A is assigned 1, B is assigned 2, C is assigned 3, and D is assigned 4. Let's break it down into 4 equal buckets of 25% each determined by which seat A picks.
A PICKS 1:
There is a 100% probability that D gets the right seat if Person A picks 1, so this represents overall a 25% favorable probability (1 of the 4 possibilities of the seat A could pick)
A PICKS 2:
If B picks 1, C picks 3, then D gets correct seat.
If B picks 3 and C picks 1, then D gets correct seat.
If B picks 3 and C picks 4, then D gets wrong seat
If B picks 4, C gets 3, then D gets wrong seat
Overall, 2/4 possibilities are favorable so take ½ of 25% (overall 12.5% favorable probability)
A PICKS 3:
B gets 2 and C picks 1, then D gets correct seat.
B gets 2 and C picks 4, then D gets wrong seat.
Overall, ½ possibilities are favorable so take ½ of 25% (12.5% favorable probability)
A PICKS 4:
100% probability that D gets wrong seat (0% favorable probability)
Add all of these up and you will see that the probability of D getting the correct seat is 50%. Correct answer is (C).