Explanation:

- E serves as the initial reference point.

- G is 10 km north of E.

- F is located 2 km east of E.

- J is 10 km south of I.

- L is 2 km west of M.

- K is 4 km east of E.

- H is 7 km west of F, and since F is 2 km east of E, H is 5 km west of E.

- I is 12 km south of G, placing it in the same line southward as E.

- L is 12 km south of F, meaning F and L are downwards and aligned.

- N is 5 km north of F.

To find the direction of M with respect to E:

- L is 2 km west of M and L is directly south of F.

- This suggests M is directly east of L and southward from E.

Final Analysis:

- The location of M in terms of E is primarily east, but with a significant south component due to the positions of L and F.

Correct Direction:

- South-East (Option 2)