Each of L, M, N, O, P, Q and R has an exam on a different day of the week starting from Monday and ending on Sunday of the same week. O has an exam immediately after Q. M has an exam immediately after O and on Wednesday. Only two people have an exam between L and R. N does not have an exam immediately before R. P has an exam immediately after N. When does N have an exam?

Given:

Each of L, M, N, O, P, Q and R has an exam on a different day of the week starting from Monday and ending on Sunday of the same week.

M has an exam immediately after O and on Wednesday. This means O has an exam on Tuesday.

O has an exam immediately after Q. Since O is on Tuesday

Only two people have an exam between L and R. The possible positions for L and R are (Thursday, Sunday) or (Sunday, Thursday).

N does not have an exam immediately before R.

P has an exam immediately after N.

Case 1: L is on Thursday, R is on Sunday.

• If L is on Thursday, then N and P must be on Friday and Saturday respectively (since P is immediately after N). This satisfies the condition that N is not immediately before R.

  Day	Person
  Monday	Q
  Tuesday	O
  Wednesday	M
  Thursday	L
  Friday	N
  Saturday	P
  Sunday	R

Case 2: R is on Thursday, L is on Sunday.

• If R is on Thursday,  N is on Friday, P is on Saturday. 

  Day	Person
  Monday	Q
  Tuesday	O
  Wednesday	M
  Thursday	R
  Friday	N
  Saturday	P
  Sunday	L

Thus, N has an exam on Friday in both the cases.

Hence, the correct answer is "Option 1".