Step 1: Analyze the pattern in the sequence of figures.
The sequence consists of alternating symbols of X, O, and S, with squares placed in varying positions in each box. The arrangement of the symbols in each box follows a repetitive, alternating pattern. The square symbols are placed intermittently throughout the sequence.
Step 2: Determine the missing figure.
By continuing the alternating pattern of X, O, and S, and considering the placement of square symbols, the missing figure follows the established pattern and completes the sequence.
Step 3: Conclusion.
The correct answer is (C), as it logically follows the alternating pattern of X, O, and S with square placements in the sequence.