Correct Answer: 4, 3, 5, 2, 1

Solution : Given:
1. Candid 2. Cancel 3. Cachet 4. Cable 5. Canary

Step 1: Compare the first and second letters of each word. Since all the words start with the same letter C and are followed by a, then move on to the next letter.
Step 2: The third letter of each word is either b , c , or n . Based on the alphabetical order of these letters, we can arrange them – Ca b le, Ca c het, Ca n did, Ca n cel, Ca n ary.
Step 3: Compare the fourth letter of (Can d id, Can c el, Can a ry). Based on the alphabetical order of these letters, we can arrange them – Can a ry, Can c el, Can d id.

So, the sequence is Cable, Cachet,  Canary, Cancel, Candid or 4, 3, 5, 2, 1. Hence, the second option is correct.