Step 1: List the words to be arranged.
(I) Sale
(II) Selection
(III) Selfish
(IV) Seldom
(V) Sender
Step 2: Compare the words letter by letter from left to right, as in a dictionary.
Comparison 1 (First letter):
All words start with 'S'. No distinction yet.
Comparison 2 (Second letter):
- (I) S__{a}le
- (II) S__{e}lection
- (III) S__{e}lfish
- (IV) S__{e}ldom
- (V) S__{e}nder
The letter 'a' comes before 'e' in the alphabet. Therefore, word (I) "Sale" comes first.
Current partial order: (I) ...
Comparison 3 (Third letter - for remaining words II, III, IV, V, all starting with 'Se'):
- (II) Se__{l}ection
- (III) Se__{l}fish
- (IV) Se__{l}dom
- (V) Se__{n}der
The letter 'l' comes before 'n' in the alphabet. Therefore, word (V) "Sender" will come last among these four words.
Current partial order: (I) ... (II, III, IV) ... (V)
Comparison 4 (Fourth letter - for words II, III, IV, all starting with 'Sel'):
- (II) Sel__{e}ction
- (III) Sel__{f}ish
- (IV) Sel__{d}om
The alphabetical order of the fourth letters ('d', 'e', 'f') determines their sequence:
- Word (IV) "Seldom" (due to 'd') comes first among these three.
- Then come words with 'e' (II) and 'f' (III).
Current partial order: (I) ... (IV) ... (II, III) ... (V)
Comparison 5 (Remaining words II and III, both starting with 'Sele' or 'Self'):
- (II) Sele__{c}tion
- (III) Selfish
The letter 'c' comes before 'f' (or even 'e' in "Selfish" is the 4th letter, so comparing (II) and (III), the comparison was between 'e' and 'f' at the fourth position in the previous step. Let's make this clear.)
Re-evaluating Comparison 4 and 5 together for (II), (III), (IV):
(IV) Seldom (Sel-d) - comes first.
Remaining: (II) Selection (Sel-e) and (III) Selfish (Sel-f).
'e' comes before 'f'. So (II) Selection comes before (III) Selfish.
Thus, the order for (II), (III), (IV) is: (IV), (II), (III).
Step 6: Combine all parts to form the final dictionary order.
1. (I) Sale (S-a...)
2. (IV) Seldom (S-e-l-d...)
3. (II) Selection (S-e-l-e-c...)
4. (III) Selfish (S-e-l-f...)
5. (V) Sender (S-e-n...)
The final arrangement in dictionary order is:
(I), (IV), (II), (III), (V)
Step 7: Match with the given options.
The derived code is I, IV, II, III, V.
This matches option (4).
The final answer is $\boxed{\text{(4)}}$.