We need a diagram that shows how Sister, Brother, Friend relate.
Sister and Brother are mutually exclusive → a person cannot be both.
Friend can overlap with both → a sister can be a friend, a brother can be a friend.
But Sister and Brother do not overlap with each other.
Now check options:
A: All separate → wrong (friends can be sisters/brothers)
B: All three overlap with each other → wrong (sister & brother shouldn’t overlap)
C: Middle circle overlaps with both outer circles, but outer circles don’t overlap → correct
D: One inside another → wrong
Final Answer: C