SOLUTION:

If you look at the action of the four persons in the picture, all of them are part of being stupid. However, there is an Order of stupidity. So, let’s see who is the most stupid person and the least stupid amongst all in decreasing order (most stupid to least):

Most Stupid Person – Person No. 4 who is cutting his own branch where he is sitting is the most stupid amongst the four persons.
2nd Most Stupid Person – Person No. 1 is the 2nd most stupid person as he is sitting on the trunk that is to be cut down by Person No. 2.
3rd Most Stupid Person – Person No. 2 has not realized that he will also be going down as Person No.3 is cutting his branch.
Person No.3 is the sliest and most clever person in the group.

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