Step 1: Place Q and U using Observations II and III.
From Observation II, \(Q\) is the shortest.
From Observation III, \(U\) is taller than only one student, so \(U\) must be the second shortest.
Hence:
\[
Q < U < \text{(remaining four: P, R, S, T)}
\]
Step 2: Use Observations I and IV to order R, S, T.
From Observation I:
\[
S > R
\]
From Observation IV:
\[
T > S \text{and} T \text{ is not the tallest}
\]
So among \(R, S, T\), we must have:
\[
R < S < T
\]
Step 3: Identify who is the tallest.
Since \(T\) is not the tallest, someone must be taller than \(T\).
The only remaining person is \(P\). Hence:
\[
P > T
\]
So the complete order (shortest to tallest) becomes:
\[
Q < U < R < S < T < P
\]
Step 4: Count students taller than R.
Students taller than \(R\) are:
\[
S,\, T,\, P
\]
So, number of students taller than \(R\) \(= 3\).
Step 5: Find who has exactly 3 students shorter than them.
From the order:
\[
Q(1),\ U(2),\ R(3),\ S(4),\ T(5),\ P(6)
\]
Students shorter than \(S\) are:
\[
Q,\, U,\, R
\]
So, number of students shorter than \(S\) \(= 3\).
Step 6: Conclusion.
Number taller than \(R\) \(= 3\) equals number shorter than \(S\) \(= 3\).
Therefore, the blank must be \(S\).
Final Answer: (C) S