Correct Answer: Theology

Solution : Given:
1. Theory 2. Theorem 3. Theology 4. Theologue 5. Theogonic

Step 1: Compare the first letter of all the words. Since all the words start with the same letter T, move on to the next letter.
Step 2: The second, third, and fourth letters of all the words are the same, i.e., h, e, and o. So, move on to the next letter.
Step 3: Compare the fifth letter of Theory, Theorem, Theology, Theologue, and Theogonic. Theogonic will come first as g comes before r, and l according to the alphabetical system. Similarly, (Theology, Theologue) will come before (Theory, Theorem) as l comes before r according to the alphabetical system.
Step 4: The sixth, and seventh letters of (Theology, Theologue) are the same. So, move on to the next letter.
Step 5: Compare the eighth letter of (Theology, Theologue). Theologue will come before Theology as u comes before y according to the alphabetical system.
Step 6: Compare the sixth letter of (Theory, Theorem). Theorem will come before Theory as e comes before y according to the alphabetical system.
Therefore, the sequence is Theogonic, Theologue, Theology, Theorem, and Theory.

So, the word Theology appears in the third position when the given words are arranged in the dictionary order. Hence, the third option is correct.