Correct option is B
Final Arrangement:

Clues: Three persons sit between C and E. A is an immediate neighbour of C. Both the immediate neighbours of E face inside. D is neither an immediate neighbour of E nor C.
Inference: Here we get two possible cases:

Clues: G sits third to the left of D. G doesn’t face inside. Both the immediate neighbours of F face outside. F is not an immediate neighbour of D.
Inference: Above clues are placed in both cases:

Clues: H doesn’t face in the same direction as G. Immediate neighbours of G face opposite direction to each other.
Inference: Case 2 gets cancelled here because it is given that only three persons face inside.

Inference: Only place for B is left. Now, the final Arrangement is:

Fifth to the right