Instead of chasing clues one by one, it helps to fill in a small table of who lives where, working outward from the flower positions to the actual people.
The second North bungalow is Blue Star, so E's home is the Blue Star bungalow.
Let's summarize:
Therefore, E lives in the Blue Star bungalow, option (c).
Read the directions carefully and give the answer from the given options.
Who is to the immediate left of K?