Solutions
1) U sits four places away from X in left direction.
2) D sits second to the right of U.
3) U is not facing the center.
4) A sits third to the right of Z.
5) A and X are not sitting together.
6) Z and D are not sitting together.
7) Immediate neighbors of Y are not facing outside.
(Here, case 2 will be eliminated and we will continue with case 1)
8) Immediate neighbors of X face the opposite direction of X.
9) Both the immediate neighbors of B face opposite directions.
10) Both the immediate neighbors of U face same direction as D is facing.
Therefore, option C is the correct answer.