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(The complete setup for this game can be found here: lsat/viewtopic.php?t=6851)
The correct answer choice is (B)
Answer choice (A) is incorrect, because habitat 4 cannot house both a snake and a lizard, according to the second rule.
Answer choice (B) is correct answer choice.
Answer choice (C) is incorrect because it violates the third rule.
Answer choice (D) is incorrect because it violates the first rule (habitat 5 houses three reptiles).
Answer choice (E) is incorrect because it violates the third rule.