Thanks for posting,
GeneW!
Though game! There are some very helpful inferences to make up front in this game, but even with those the game is extremely open. And then you get slammed with a number of unconditional questions! Very frustrating.
First, let's be clear about the diagram we should already have walking into this question:

That numerical information is going to come in handy. Now, this question would be far more restricted if we were looking for just how many artifacts could be from Norway
together, since Norway can never have more than two in any given scenario. But this question is asking something different.
We've got to figure out if any of our players just can't go in Norway
at all, ever! Probably the simplest way to answer this question would be if we had done frames
from the beginning of the game. Juiciest framing is around the WY chunk, since that takes up a lot of room, and numbers are definitely a big factor in this game.
First step to framing is to spin out three grids, and plop WY into each of them:

First frame doesn't tell us much at all, but the second frame falls apart. If WY are in Norway, all three of the remaining artifacts must be in Iceland to meet the numerical rule. But X can't go there, and V and Z both in Iceland would break the conditional!
The third frame locks for the most part, since X can't go in Iceland, and V and Z can't BOTH be in Iceland - that restricts Iceland to a single artifact. That means nothing can be in Norway, and everyone else gets forced into Sweden.

From the frames, we now know that W and Y can't ever go in Norway, so we bring the maximum down to 3. Looking at the first frame, X, V, and Z could all potentially go in Norway (though not at the same time). We COULD at this point, actually try out scenarios to ensure that these three work, but unless we've missed a major inference in the first frame, there's no reason why each of them can't.
So, three could work!
(C)!
Now, if we hadn't framed originally, we'd have more thinking to do. First stop would be to check prior work. The orientation question doesn't help us much, as the correct answer had zero in Norway. Question 14, however, gives us this diagram:

This shows us that both V and X could conceivably go in Norway. So, we can get at least two.
The next thought should be to check the WY chunk - it takes up so much room, that it should have a big red target on it. Testing it shows it can't work in Norway, just like the second frame above.
The only one left is Z, and you might just run through a quick scenario to show that you could easily put Z in Norway without any major disasters. Once again, X, V, and Z could all be in Norway (though not all at the same time), and our answer is 3,
(C).
Please let me know if this completely clears up your question about this one!