Solution:

If the fuse is placed in the neutral wire, and an excessive current flows in the circuit due to a malfunction in the appliance. The fuse will blow and the current will cease flowing in the circuit. But the appliance will stay connected to the high potential point of the supply through the live wire. If a person handles the malfunctioning device now, he will receive an electric shock since he will come into direct contact with the mains via the live wire. As a result, the fuse is always linked to the circuit’s live wire.