The correct answer is 3 houses.
Given:
Some houses are already taken, but others are empty and available for sale. The base price for an empty house is either Rs. 10 lakhs if it doesn't have a parking spot and Rs. 12 lakhs if it does have a parking lot.
So the price of a vacant house is calculated as = Base price+5(road adjacency value)+3(neighbor count). We know the most expensive house in Block XX costs Rs. 24 lakhs.
Now calculate for the maximum price of a house in block XX.
1. House with parking lot;
road adjacency value = a, neighbor count = b
12+5a+3b=24
5a+3b=12
The equation only works if a equals 0 and b equals 4. However, b can't be 4 because the most neighbors a house can have is 3.
So, it is invalid.
2. House without parking lot:
10+5a+3b=24
5a+3b=14 , (a,b)=(1,3)
So, the house must have 3 neighbors and 1 road connected to it. Therefore, the only possible case is B2. Thus, the neighboring houses of B2, which are B1, A2, and C2, are also occupied. Since we know that Row 1 has two occupied houses, with one in each block, and B1 is already occupied, it implies that A1 and C1 are vacant.
That means 3 houses are occupied in Block XX.
So, the correct option is (C): 3.