1. Writing out the sequence in binary is very illustrative:
    000
    011
    110
    001
    100
    111
    010
    101
    000
By inspection, we see that x0 flips at each step, x1 flips iff not(x0), and x2 flips iff x0+x1.

The clock is not drawn below; it should be wired into the clock input of each JK flip-flop.


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