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Let's see what are the possibilities to arrange Dane, German and Swede in the the remaining houses (Norwegian and Brit are already placed into the first and the third house).

The second house can be owned only by Dane or German.  Swede can't own the second house, since:
2. The  Swede  keeps  dogs  as pets.
and we know already that the owner of the second house keeps horse.

The fourth house can be owned only by German or by Swede.  Dane can't own the fourth house, since:
3. The  Dane  drinks  tea.
and we know already that the owner of the fourth house drinks coffee.

There are no restrictions on the owner of the fifth house, so he can be either Dane, German or Swede.

The conditions spelled out above make only three distributions possible:

 No  1 2 3 4 5
  1 Norw Germ Brit Swede Dane
  2 Norw Dane Brit Swede Germ
  3 Norw Dane Brit Germ Swede

Let's look closer at the first distribution.  Considering that:
13. The  German  smokes  Prince.
3. The  Dane  drinks  tea.
we'll end up with the following table to analyze:

 No  1 2 3 4 5
Col yellow blue red green white
Nat Norw Germ Brit Swede Dane
Bev     milk coffee tea
Cig Dunh Prince      
Pet   horse      

What will be your judgement about this table?

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