We are told that:
- A owns a Blue Sierra.
- There are 5 people (A–E) with 5 different car brands (Maruti, Mercedes, Sierra, Fiat, Audi) and 5 different colors (Black, Green, Blue, White, Red).
- No two cars have the same brand or color.
Also, from the conditions:
- (i) A's car is not Black and not Mercedes → OK (A’s car is Blue Sierra – valid)
- (ii) B’s car is Green and not Sierra
- (iii) E’s car is not White and not Audi
- (iv) C’s car is Mercedes and not Blue
- (v) D’s car is not Red and is a Fiat
Let’s deduce E’s car under A’s assumption (A owns Blue Sierra):
- Blue and Sierra are used by A. So E's car cannot be Blue or Sierra.
- From (iii), E’s car is not White and not Audi.
- So, E’s color ≠ Blue, White and brand ≠ Audi
- Also, from the overall uniqueness rule, E’s car ≠ Blue (used), ≠ White (given), ≠ color of D or B or C (deduced from other conditions)
- Among the options, (D) Red Audi is the only one matching unused color (Red) and brand (Audi)
But wait — (iii) says E’s car is not Audi. So Red Audi is invalid for E.
Let’s test options:
- (A) Red Maruti: Audi not used, Red ok for E, brand Maruti unused? Possible
- (B) White Maruti: E’s car not White → Invalid
- (C) Black Audi: E’s car not Audi → Invalid
- (D) Red Audi: E’s car not Audi → Invalid
Wait — now A owns Blue Sierra, E cannot have Audi or White → eliminates (B), (C), (D)
Only (A) left: Red Maruti, which is a possible configuration.
Hence, Correct Answer is: \(\boxed{\text{A}}\)