(D) is incorrect because it violates rule (6). If P plays tennis, then K plays tennis, O ranked lower than K but HIGHER than P. Thus is it impossible for P to be ranked higher than O.
Let's review the setup for this game to see how the rules fit together:
The game requires us to assign 6 people -K L M O P S - to 2 spots - G or T, and rank people within each sport. The following conditions apply:
(1) O plays tennis. (2) L plays golf. (3) No one is ranked higher than L in golf, i.e. L is #1 in golf.
T: O G: L
(4) If M plays golf, then P & S play golf, P ranking lower than M but higher than S
This rule tells us that if M plays golf, we have the following order: L M P S
(5) If M plays tennis, then S plays tennis, S ranking lower than O but higher than M.
This rule tells us that if M plays tennis, we have the following order O S M
(6) If P plays tennis, then K plays tennis, O ranking lower than K but higher than P
This rule tells us that if P plays tennis, then we have the following order K O P
We can combine these rules to determine several possible scenarios:
Scenario 1 - M plays G:
T: O G: L M P S
K is a free variable in this scenario and could either play T or G and could be ranked 1 or 2 in T or have any rank except #1 in G.
Scenario 2 - M plays T and P plays T: T: K O /P /S M G: L
Scenario 3 - M plays T and P plays G:
T: O S M G: L P
K is again a free variable and could either play T or G and have any rank in T and any rank aside from #1 in G.