Firstly, we can easily prepare a table deciding the colour of each house.
The second step is to arrange the houses on either sides of Road. In deciding the arrangement of houses information (vii) can be used first which decides two possibilities as follows.
Case 1. P -- U -- S
Case 2. S -- U -- P
Now, since, we know the colour of each houses the other information can easily be used to decide the final arrangement as below.
Side 1 T -- Q -- R
Side 2 S -- U -- P
Side 1 R -- Q -- T
Side 2 P -- U -- S
And last, the arrangement of houses in descending orders of their heights
1- (d) S (Red) is diagonally opposite to R(yellow)
2- (d) The second tallest house is either S or Q.
3- (b) T is the tallest house and its colour is Blue.