Correct Answer:

Solution : According to the given figures –
1. A figure at the centre rotates 90° in the anti-clockwise direction.
2. The letters are placed diagonally –
In Box 1, the letters M and N are placed diagonally in the southwest and northeast directions.
In Box 2, the letters are rotated in a clockwise direction and M and N are changed to N and O. After rotating clockwise the letters N and O are placed diagonally in the southeast and northwest directions.
In Box 3, the letters are rotated in a clockwise direction and N and O are changed to O and P. After rotating clockwise the letters O and P are placed diagonally in the northeast and southwest directions.
In Box 4, the letters are rotated in a clockwise direction and O and P are changed to P and Q. After rotating clockwise the letters P and Q are placed diagonally in the northwest and southeast directions.

So, following the above pattern, the required figure will be as follows –

Therefore, the figure in the first option is the required figure. Hence, the first option is correct.