This question is a classic example of a coding and decoding puzzle where certain words are given new meanings. To solve such problems, you need to first identify the real-world object or action and then find its corresponding coded name as per the given rules.

Coding Rules Analysis

Let's break down the definitions provided in the puzzle:

• If ‘book’ is a ‘table’
• If ‘table’ is a ‘fan’
• If ‘fan’ is a ‘chair’
• If ‘chair’ is a ‘pencil’

Identifying the Sitting Object

The core of the question is to determine on which object a person will sit. In reality, and in common understanding, a person sits on a ‘chair’.

Applying the Code to 'Chair'

Now, we need to apply the given coding rules to the real object of sitting, which is a ‘chair’. According to the puzzle's redefinitions:

• The word ‘chair’ is coded as ‘pencil’.

Therefore, if a person normally sits on a ‘chair’, and the ‘chair’ is now called a ‘pencil’ in this coded language, then a person will sit on a ‘pencil’.

Step-by-Step Decoding

Here’s how we can logically deduce the answer:

1. Normal Action: A person sits on a chair.
2. Find the Code for 'chair': Look at the given statements to see what 'chair' is called.
3. Direct Mapping: The statement clearly says, ‘chair’ is a ‘pencil’.
4. Conclusion: Since a person sits on a chair, and a chair is called a pencil in this code, a person will sit on a pencil.

The correct option is the one that states pencil.