It's best to try this question with the options. The only thing that we will have to keep in mind is three large circles with the same color cant be together.
For the first dropdown , there is no problem with "Danielle".
Hence , we should think whether we replace Kitty or Simon.
If we try with Kitty and replace it with Miranda , then there will not be any problem with the first circle ( circle with Miranda/Simon now).
But there will be a problem with the second circle as Kitty and Adam and Lilly will be together.
And we will not be able to solve this problem even with the second statement as if we replace Fiona with Lilly , then Lilly , Simon and Anna will be together. The other options for the second statement i.e Cara ( does not help as if we replace Fiona with Cara , the problem in the second circle still persists as Adam , Kitty and Lilly are together ) and i.e Rick ( same problem like Cara) do not help.
But if we try with Simon and replace it with Miranda , then there will not be any problem in the first circle (kitty , miranda, fiona , anna i.e white , blue ,blue , white).
But there will be a problem with the second circle as Adam , SImon and Lily willl be together.
No effect if we try with Rick and Cara . Hence , lets replace fiona with Lily ( only option left)
and all problems get resolved . Now for the first circle , there are kaleb , kitty ,Miranda , Lilly , Anna ( i.e white, white , blue , blue , white)
and for the second circle , there are Adam , SImon Fiona , Rakesh ( white , white , blue , blue ) . Hence all problems get resolved.
Am I right in my understanding ?kindly check.
martyGMATCoachBen