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Explanation:

If we divide the given input into 5 groups with 2 words each then the groups can be written as:
 
Group 1: Smile Nile

Group 2: Style Mile

Group 3: Shine Wine

Group 4: Mine Swine

Group 5: Bovine Feline

 Group numbers are given in the order in which they are given in that STEP.
 
Then the steps of rearrangement can be written as:

STEP 1: Position of group 4 is interchanged with position of group 5.

STEP 2: Position of group 1 in step 1 is interchanged with position of group 2.

STEP 3: Position of the words of group 3 in step 2 is interchanged.

STEP 4: Position of words of group 1, group 2, group 3 and group 5 are interchanged.
 
For example: If the words in group 1 in step 3 are Smile Nile then the words in group 1 of step 4 will be Nile Smile.

STEP 5: Position of group 1 is interchanged with position of group 2 and position of group 4 is interchanged with position of group 5.

STEP 6: Position of group 4 is interchanged with the position of group 5.

STEP 7: Position of group 1 is interchanged with the position of group 2.
 
∴ We can say that the algorithm of rearrangement repeats after 5 steps.

∴ STEP 8 for the given input will be:
 
STEP 8: Mile Style  Nile Smile  Shine Wine  Feline Bovine  Swine Mine

STEP 9: Style Mile  Smile Nile  Shine Wine  Bovine Feline  Mine Swine

STEP 10: Smile Nile  Style Mile  Shine Wine  Mine Swine  Bovine Feline

STEP 11: Smile Nile  Style Mile  Shine Wine  Bovine Feline  Mine Swine

STEP 12: Style Mile  Smile Nile  Shine Wine  Bovine Feline  Mine Swine

STEP 13: Style Mile  Smile Nile  Wine Shine  Bovine Feline  Mine Swine

STEP 14: Mile Style  Nile Smile  Wine Shine  Feline Bovine  Swine Mine

STEP 15: Nile Smile  Mile Style  Wine Shine  Swine Mine  Feline Bovine

STEP 16: Nile Smile  Mile Style  Wine Shine  Feline Bovine  Swine Mine

STEP 17: Mile Style  Nile Smile  Wine Shine  Feline Bovine  Swine Mine

STEP 18: Mile Style  Nile Smile  Shine Wine  Feline Bovine  Swine Mine

STEP 19: Style Mile  Smile Nile  Shine Wine  Bovine Feline  Mine Swine

STEP 20: Smile Nile  Style Mile  Shine Wine  Mine Swine  Bovine Feline

Referring the Steps given in the solution we get that,

Option A is step 13.

Option B is step 14.

Option C is step 12.

Option D does not fall between step numbers 12 and 14.

Hence, option (d).

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