Discussion
Nandani is the only daughter of Madan's sister Sangita's brother. How is Nandani related to Madan?
Answer: D
Nandani is Madan's niece or daughter.
Sangita is Madan's sister, so Sangita's brother is either Madan himself or another brother of theirs. The statement does not say which.
If the brother is Madan, Nandani, his only daughter, is Madan's daughter. If he is another brother, Nandani is Madan's brother's daughter, his niece. Both readings fit, so the complete answer is 'niece or daughter'.
'Daughter' and 'Niece' alone each pick one case and are incomplete. 'Cousin' is wrong in either case, since Nandani is one generation below Madan.
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