Step 1: Assign a numeric west-to-east rank to every hill.
Let $r(H)$ denote the position of hill $H$ counted from the west, so $r(H) \in \{1,2,3,4\}$, with $r=1$ the westernmost hill and $r=4$ the easternmost hill. Clues (i) and (ii) tell us $r(H2) \notin \{1,4\}$ and $r(H3) \notin \{1,4\}$, so both $r(H2)$ and $r(H3)$ lie in $\{2,3\}$, which forces $\{r(H1), r(H4)\} = \{1,4\}$.
Step 2: Turn clue (iv) into an equation.
Clue (iv) states that exactly two hills have a smaller rank than H2, that is $r(H2) - 1 = 2$, giving $r(H2) = 3$. Since $r(H2)$ and $r(H3)$ together occupy $\{2,3\}$, this leaves $r(H3) = 2$.
Step 3: Turn clue (v) into an inequality and test each remaining candidate.
From clue (iii), the southernmost hill has rank in $\{2,3\}$, so its candidates are H3 ($r=2$) and H2 ($r=3$). Clue (v) requires the southernmost hill to have at least two hills to its east, which in rank terms means $4 - r \geq 2$, i.e. $r \leq 2$.
Step 4: Apply the inequality.
For H3, $r = 2$, so $4 - 2 = 2 \geq 2$: the condition holds. For H2, $r = 3$, so $4 - 3 = 1 < 2$: the condition fails. Only H3 satisfies $r \leq 2$ among the two candidates.
Step 5: Conclude.
The hill with rank 2, which is H3, is the only hill consistent with every one of the five clues, so it must be the southernmost hill.
\[ \boxed{\text{Southernmost hill} = H3} \]