This question is a placement puzzle. Instead of algebra, list the four positions from west to east as 1, 2, 3, 4 and place the hills by elimination, one clue at a time.
Only $H_3$ survives every clue, so $H_3$ is the southernmost hill.
Let's summarize:
The correct answer is $H_3$, option (C).
Statement: All flowers are beautiful. Some beautiful things are fragile.
Conclusion I: Some flowers are fragile.
Conclusion II: All beautiful things are flowers.