(Needing help) CIE AS Level Maths 63 (Stats 1) O/N 2010

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I am in need of help for question 6 (ii) and (iii)

(ii). I looked at the mark scheme and I don't understand why the students are 5! and not 7P3 (because there are 7 window seats available and 5 different students) and I just don't plain understand the bit on Mr and Mrs Brown and Lin (how does the 3P2 come into the picture? =/)

(iii). I don't get it :(

Can anyone please help explain this to me?
 
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