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Let`s analyze the given information and draw a diagram to understand the seating arrangement:
```
1 2 3
1 M N O
2 P Q R
```
From the given information, we can infer the following:
- Q is not at the end of any row, so Q must be sitting in the middle of row 2.
```
1 2 3
1 M N O
2 Q
```
- P is second to the left of R. So, R must be at either end of row 2 and P must be in the middle of row 2.
```
1 2 3
1 M N O
2 P R
```
- O is the neighbor of Q and is sitting diagonally opposite to P. So, O must be sitting in row 1 and diagonally opposite to P, which means O must be sitting in the right corner of row 1. N is the neighbor of R, so N must be sitting next to R in row 2.
```
1 2 3
1 M N O
2 P R
```
From the above diagram, we can see that N is facing O.
Therefore, the answer is O.