Explanation
To arrange the words in alphabetical order as they appear in a dictionary, they are compared letter by letter from left to right. All four words begin with the prefix Perm. Comparing the fifth letter, Permafrost, Permanence, and Permanent have the letter a, while Permeability has the letter e. Since a precedes e in the alphabet, Permeability is placed last.
Next, comparing the sixth letter of the remaining three words, Permafrost has the letter f, whereas Permanence and Permanent both have the letter n. Since f comes before n, Permafrost is positioned first in the sequence.
Finally, comparing Permanence and Permanent, the first eight letters are identical. At the ninth position, Permanence has the letter c and Permanent has the letter t. Since c precedes t, Permanence comes before Permanent.
This establishes the correct alphabetical sequence as Permafrost, Permanence, Permanent, and Permeability, which matches the order iii, i, ii, iv.