(C) is incorrect because Hodges can join the firm in 1964.
If J is second, this means that K must be first (Rule #2). The only two options for variables that could go third are H (which has nothing that must precede it) or M (which only requires that J precede it). All of the other variables must be preceded by other variables that are not yet placed. If we place M third, H is the only option for what can go fourth. Below is a valid scenario in which this is the case:
K J M H N O G I 1 2 3 4 5 6 7 8
In this diagram, J is second, H is fourth, and no rules are violated. Therefore, (C) is incorrect.
Does that make sense? Hope it helps! Please let us know if you have any other questions.
