Pointing to a woman in a picture, Raju said, "Her mother in-law has only one grand child whose mother is my wife". How is the woman in the picture related to Raju?

Wife

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Please note:

  l   ⇒ Vertical line shown "generation gap".

 =  ⇒ Double lines shown "relation of spouse" 

—  ⇒ Horizontal line shown "relation in same generation other than spouse".

     ⇒ Rectangular box shown " Male".

     ⇒ Circular box shown " Female".

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This statement implies that the woman's mother-in-law has only one grandchild. The mother of that grandchild is Raju's wife. Therefore, the woman in the picture is Raju's wife.