If F is not selected to attend the retirement dinner, then exactly how many different groups of four are there each of which would be an acceptable selection?
Three
Since the second condition states "either E or F must be selected...," we can infer from the new supposition (F is not selected) and the second condition (either E or F, but not both, is selected) that E is selected. And since E is selected, we know from the third condition that C is selected. In other words every acceptable selection must include both C and E.
We are now in a good position to enumerate the groups of four which would be acceptable selections. The first condition specifies that either A or B, but not both, must be selected. So you need to consider the case where A (but not B) is selected and the case in which B (but not A) is selected. Let's first consider the case where A (but not B) is selected. In this case, G is not selected, since the fourth condition tells you that if B is not selected, then G cannot be selected either. Since exactly four people must be selected, and since F, B, and G are not selected, D, the only remaining person, must be selected. Since D's selection does not violate any of the conditions or the new supposition, E, C, A, and D is an acceptable selection; in fact, it is the only acceptable selection when B is not selected. So far we have one acceptable selection, but we must now examine what holds in the case where B is selected.
Suppose that B is selected. In this case A is not selected, but G may or may not be selected. If G is selected, it is part of an acceptable selection -- E, C, B, and G. If G is not selected, remembering that A and F are also not selected, D must be selected. This gives us our final acceptable selection -- E, C, B, and D.
Thus there are exactly three different groups of four which make up acceptable selections, and (C) is the correct option.