Arrange the given words in the sequence in which they occur in the dictionary.
1. Muted
2. Mystic
3. Mutual
4. Mutiny
5. Myth

First letter of all the words are same so verifying the second letter.

The second letter of Mystic and Myth is 'y' which is after 'u' in alphabetical order. So Mystic and Myth are placed after Muted, Mutual and Mutiny.

Among Muted, Mutual and Mutiny, the alphabetical order of fourth letters are e, i, u. Arranging the respective words in the same order, Muted is placed first, Mutiny is placed second, Mutual is placed third.

Among Mystic and Myth, the alphabetical order of third letters are s, t. Arranging the respective words in the same order, Mystic is placed fourth, Myth is placed fifth.

$$\therefore\ $$The order of the givens words according to dictionary is Muted, Mutiny, Mutual, Mystic, Myth

Hence, the correct answer is Option B