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Answer: (B) Two
Explanation
Arranging the 7 persons on floors 1 to 7 based on the given conditions yields floor 7: A, floor 6: F, floor 5: C, floor 4: E, floor 3: G, floor 2: B, and floor 1: D. Since G lives on the 3rd floor, the persons living below G are on the 1st and 2nd floors, which equals two persons.