Step-by-Step Explanation:

In the classical Indian School of logic, particularly "Nyaya," the process of inference (Anumana) consists of a systematic method to arrive at a conclusion based on various steps. Let's explore the correct sequence of steps involved in Anumana:

1. Pratijna (Proposition): This is the initial assertion or statement that needs to be proven. For example, "There is fire on the hill."
2. Hetu (Reason): This step provides the reason behind the assertion. It is the cause or evidence supporting the proposition. For example, "Because there is smoke on the hill, and smoke indicates fire."
3. Udaharana (Example): Here, a universal rule or commonly accepted example supporting the inference is presented. For instance, "Wherever there is smoke, there is fire, like in a kitchen."
4. Upanaya (Application): This step applies the universal rule to the specific instance to strengthen the argument. For example, "There is smoke on the hill, similar to the smoke observed in the kitchen that accompanies fire."
5. Nigmana (Conclusion): This is the conclusion drawn from the previous steps. For example, "Therefore, there is fire on the hill."

Hence, the correct sequence of steps involved in Anumana according to classical Indian logic is Pratijna, Hetu, Udaharana, Upanaya, Nigmana.

This approach allows for a logical and systematic method to derive conclusions, ensuring clarity and precision in reasoning. Understanding and following this sequence is critical for answering questions related to logical reasoning in competitive exams.