Dear Ashish,
You are welcome but remember that Organic Chemistry is an experimental Science and not a theoretical one; which means that theory follows the prior experimental data and not that the experimental results ought to follow the theoretical rules.
In other words, the experimental results cannot be predicted in advance, except in very simple cases.
Indicatively, Birch reduction (metals + liquid ammonia) at 1/1 molar ratio selectively reduces the endocyclic bonds but it also selectively reduces the conjugated bonds and also selectively, the activated allylic moiety. Besides, the extremely alkaline conditions may also cause isomerization of the vinyl bond that is in α- position of the limonene's ring. That’s why it was previously mentioned that is your teacher’s opinion that counts.
Anyway, the product (Z) is also prepared by another method, as seen in the attached file. This can help you to decide which double bond will selectively be reduced, in the question (iii) and interpret the corresponding reaction mechanism, as well as to decide about the role of the shown hydrogens, whether significant or not.