Explanation:

Alright, let’s break this down step by step:

- Look at the original sample: each step seems to remove words starting with certain letters in alphabetical order until a smaller core group remains, then those are rearranged by some internal rule.

- In your new input (FILES, GRADE, INSIDE, AWARE, ADVANCE, PAIRS, FOREIGN, ALTER, OVER, TOWARDS), the standouts are "AWARE," "ADVANCE," and "ALTER", all starting with ‘A’.

- Here’s where it matters—according to the first example, words with the earliest starting letter in the alphabet are removed first.

- That means, from this group, all ‘A’ starting words would go in the initial step if the rule is the same.

- OUT OF FILES, GRADE, AWARE, ADVANCE, PAIRS, only "AWARE" and "ADVANCE" begin with ‘A’, while the rest start with different letters entirely.

- So, the odd one out is any option that doesn't start with ‘A’—since those would be treated differently.

- Your answer: Option 4—ADVANCE. But "AWARE" also starts with ‘A’ and would be removed in the same way.

- "FILES," on the other hand, starts with ‘F’—it would be handled later.

- Therefore, the one that doesn’t belong is Option 1—FILES. The others are together in being removed first.

- To recap:

- 1. FILES – starts with F (does not belong)

- 2. GRADE – starts with G

- 3. AWARE – starts with A

- 4. ADVANCE – starts with A

- 5. PAIRS – starts with P

Correct Answer: Option 1—FILES