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Word based equations can be understood by the following example. Given below are the words and the codes for those words in a certain language. RSQMP /SINCE ​ MRCX /LIVE ​ XQMO/ SLIP ​ SRK /NEW ​ Letter C is coded for:

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Correct option is A)
First thing to do is look for repeated letters and for their codes. Take the first word as the base. Letter I and E are repeated in the second word so also the codes M and R. In the third word I is repeated and hence the coed M. Therefore, M is coded for I and R is coded for E.
Looking more closely, letter S is repeated in the word SLIP. So also code letter  Q. Therefore Q is coded for S. now, letter N is repeated in word four (NEW). So also the code letter S. Therefore S is coded for N. In the word, since we know the codes for N and E (S and R respectively), K is coded for W. Therefore since all the codes are known, in the word SINCE, Pis coded for C. In words two and three, letter L is repeated so also  code letter X. Therefore X is coded for L. Therefore by default C is coded for V and O is coded for P.
Final Representation
S  I  N  C  E  L  V  P  W
↓  ↓  ↓  ↓  ↓   ↓  ↓  ↓  ↓
Q  M  S  P  R  X  C  O  K
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