Question 5 of Game 2 gives us two new blocks to place- KH and LF. Rule #5 already gave us the block HG, so we can combine this with the block KH to get KHG.
Let's look at what happens when we try to place H in spot 3. __ __ H __ __ __ __ 1 2 3 4 5 6 7
We know we need the block KHG, so we must place K in spot 2 and G in spot 4. __ K H G __ __ __ 1 2 3 4 5 6 7
We also have the block LF, and Rule #1 tells us that F is either in spot 3 or spot 5. H is already in spot 3, so F cannot go there. Therefore, F must go in spot 5. However, there is no room for L to come directly before F for our LF block if F is assigned to spot 5, as spot 4 is already occupied by G. Moreover, Rule #2 says that L cannot be assigned to spot 4 anyway. This means that the scenario is invalid. H cannot be placed in spot 3.
Instead, when we first approach this question we should notice that Rule #1 says F can only be assigned to either spot 3 or spot 5. However, this question gives us an LF block, and Rule #2 says that L cannot go in spot 4 or spot 6. Therefore, F cannot be assigned to spot 5 because if it was, L would have to be assigned to spot 4 to keep the block, which would violate Rule #2. Since F cannot be assigned to spot 5, it must be assigned to spot 3. L would be assigned to spot 2. Since F is already in spot 3, it would be impossible to place H there.
Does that make sense? Please let us know if you have any other questions!